Mumbai, April 2 Markets regulator SEBI heeded to the MF industry's request and extended the timeline for 'Pooling of Accounts' to July 1, 2022, said Association of Mutual Funds in India (AMFI) on Saturday.
Accordingly, pooling of investor's funds and units by stock-brokers and clearing members in any form or manner and by the 'Mutual Fund Investment Advisors' or 'Distributors' for mutual fund transactions was to be discontinued from April 1, 2022.
However, after mutual discussion and agreement, SEBI has given the MF industry extended timelines until July 1, 2022, to enable it to bring in high level of operational efficiency in the interest of investors and efficient functioning of MF subscriptions and redemption.
"We are confident of faster implementation owing to adoption of new-age technology and with the help of other stake holders such as Stock Exchanges and channel partners, so that we can further strengthen investor service and their evolving savings need towards newer mutual fund solutions," said A. Balasubramanian, Chairman, AMFI.
According to N.S. Venkatesh, Chief Executive, AMFI, to stay focused on the efficient and effective implementation of the SEBI circular dated October 4, 2021, the industry has agreed to halt the launches of new schemes till July 1.
"We as Mutual Fund Industry, have agreed to keep New Fund Offers (NFOs) launches on hold during this period. We are confident that NFOs will be back on track soon," Venkatesh said.
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