Market regulator SEBI has responded to a request from the microfinance industry and has extended the timetable for the ‘pooling of accounts’ to July 1, 2022, the Association of Mutual Funds of India (AMFI) said on Saturday.
Accordingly, the pooling of investor funds and units by stock brokers and clearing members in any form or manner and by ‘Mutual Fund Investment Advisers’ or ‘Distributors’ for mutual fund transactions was to be discontinued with effect from 1 April 2022.
However, after mutual discussion and agreement, SEBI has granted the microfinance industry extended timelines until July 1, 2022, to enable it to achieve a high level of operational efficiencies for the benefit of investors and the efficient operation of MF subscriptions and redemptions.
“We are confident in the speed of implementation thanks to the adoption of new age technology and with the help of other stakeholders such as stock exchanges and channel partners, so that we can enhance the service of investors and their evolving savings need towards new mutual fund solutions,” said A. Balasubramanian, President of AMFI.
According to NS Venkatesh, CEO of AMFI, to continue to focus on efficient and effective implementation of the SEBI circular of October 4, 2021, the industry has agreed to halt the launch of new schemes until July 1.
“As the mutual fund industry, we have agreed to keep New Fund Offers (NFOs) on hold during this period. We are confident that non-financial organizations will be back on the right track soon,” Venkatesh said.
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