The Securities and Exchange Board of India (Sebi) on Thursday extended the deadline by three months for implementation of the rule to discontinue pooling of funds and/or units in mutual fund transactions by stock brokers/clearing members, and other entities operating online. The ban on the activity was supposed to be in place from April 1 2022, however, it will now come in action on July 1, 2022, considering representations from the Association of Mutual Funds in India (Amfi) on the same, Sebi said on Thursday.
“On examination of the representation of Amfi, in the interest of the investors, it has been decided to extend the date of applicability of “Circulars” including the clauses relating to 2FA for redemption and source account verification to July 1, 2022,” said Sebi.