Kotak Mahindra AMC withdraws two NFOs

5 Apr 2022 , 02:10 PM

The NFO of Kotak Consumption ETF was slated to open on 4 April 2022 and close on 11 April 2022. The ETF seeks to replicate the composition of the NIFTY India Consumption Index.

Meanwhile, the Kotak MNC ETF NFO was slated to open on 11 April 2022 and close on 20 April 2022. The ETF seeks to replicate the composition of the NIFTY MNC Index.

The Securities and Exchange Board of India (Sebi) has barred new mutual funds offers (NFOs) for three months till 1 July 2022 in order to facilitate the discontinuation of the practice of pooling of accounts.

In order to protect investors’ money, Sebi has asked all intermediaries to stop pooling of funds and directly transfer the money against every purchase and redemption via an exchange like BSE & NSE or directly transfer it to the AMC.

Under the new system, no stockbroker, clearing corporation or any other intermediary shall process MF transactions by way of pooling of accounts. Stockbrokers and clearing corporations should not handle both pay-in and pay-out of funds. MF purchases and sales must be directly credited and debited from the respective investor’s demat/folio accounts without routing it through pool accounts.

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