SEBI agrees to AMFI's request for extending Pooling of Accounts timeline to July 1, 2022

4 Apr 2022 , 05:14 PM

Securities & Exchange Board of India (SEBI), the markets regulator, has agreed to the Association of Mutual Funds in India (AMFI), industry body for Mutual Funds, request to extend the existing timeline of April 1, 2022, for implementing discontinuation of Pooling of Account, to July 1, 2022. The extension in the deadline is to facilitate efficient technology overhaul and its smooth transition to serve growing investor needs.

Pooling of investor’s funds and units by stock-brokers and clearing members in any form / manner and by the Mutual Fund Investment Advisors / Distributors (wherever it was taking place) for mutual fund transactions was to be discontinued from April 1, 2022.

However, after mutual discussion and agreement, SEBI has given the Mutual Fund Industry extended timelines until July 1, 2022, to enable MF Industry to bring in high level of operational efficiency in the interest of Investors and efficient functioning of Mutual Fund subscriptions and redemption.

Speaking on the occasion, Mr. A Balasubramanian, Chairman, AMFI said, “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.”

Mr. N S Venkatesh, Chief Executive, AMFI said, “To stay focused on its efficient and effective implementation of the said October 4, 2021, SEBI circular, 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”