Mafatten: SEBI extends deadline for compliance with certain directives to July 1

By providing more time for home financing, SEBI on Thursday extended the deadline to implement certain guidelines for mutual funds, including those related to using pool accounts for transactions, to July 1.

In October 2021, Sebi said that stockbrokers and clearinghouse members should not accept payment through a one-time authorization or issue authorizations or instruments in their own name for mutual fund transactions.

Earlier this month, the regulator said that one-time authorizations for recognized SEBI clearing firms could be accepted from April 1 and now, that deadline has been extended.

“On or after July 1, 2022, new authorizations will be accepted only for the benefit of recognized SEBI clearing firms and such authorizations will be exclusively for subscriptions to units of mutual fund schemes and for no other purpose,” Sebi said on Thursday.

The deadline for discontinuing the use of pool accounts for transactions in mutual fund units, two-factor authentication (2FA) for redemption and other related requirements has been extended after representation from the Association of Mutual Funds of India (AMFI).

“On examination of AMFI’s representation, for the benefit of the investors, it was decided to extend the applicability date of the “circulations” including clauses related to 2FA for recovery and verification of the issuer’s account to July 1, 2022,” the agency said in the circular issued on Thursday.

(The title and image for this report may have been reformulated only by the Business Standard staff; the rest of the content is automatically generated from a shared feed.)

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