PERSONAL FINANCE
Mutual fund investments will not be initiated from pooled accounts from July 1 as per the Securities and Exchange Board of India's order.
As per the order of Securities and Exchange Board of India, mutual fund investments will not be initiated from pooled accounts from July 1. The order states that mutual fund distributors, investment advisors, stockbrokers and other service providers involved in mutual fund transactions would no longer pool funds.
READ | New Labour Code from July 1: Know the changes to salary, full and final settlement
Instead, the money will be transferred from the investor’s bank account to the bank account of the mutual fund house directly. Many platforms offering mutual funds had complied with the new rules in the month of June.
Here’s what investors should do
It is important to note that starting July 1, all the SIPs where your broker transfers funds from your broking account balance to the mutual fund house will not initiate. You have to sign up for fresh National Automated Clearing House mandates in favour of the clearing corporation. While most Mutual Fund houses have altered their SIP systems, intelligent investors must remain vigilant about the change.
Meanwhile, small distributors claim that they were already dealing with the fund house directly.
The Economic Times quoted ‘Ladderup’ founder Raghvendra Nath as saying, “Our mandates were directed to the fund house directly. So, our clients don’t need to bother about it. However, if you are dealing with a bigger distribution firm or an MF platform, they would change it on their level. I don’t think retail investors need to worry about the paperwork”.
CEO’s of various other firms have assured that investors don’t need to worry about doing anything on their own. The distribution platforms will be changing transaction routes.
From July 1, your money invested in mutual funds will not go to a broker’s or the Mutual Fund platform’s account. It will directly go from your account to the mutual fund house’s account. Several investors had earlier raised concerns over delayed confirmations of payment in May 2022 as some Mutual Fund platforms stopped pooling accounts. Later, they confirmed that they are working to rearrange their systems for the ease of investors.
All set for vote counting in Jharkhand tomorrow; NDA, JMM-led alliances confident of winning
Watch: Australia star inquires Rishabh Pant about his next IPL team, gets 2-word reply
Shah Rukh Khan’s house Mannat was first offered to his industry rival…, but he refused because...
The Visionary Who Promises a Blue Sky for India: Holger Thorsten Schubart’s G20 Climate Speech
The Surge of High-End Living: Luxury Residential Market to Outpace Other Segments
FeFCon 2024 to be Held in Bangalore: A Premier Event on Fever Management
'That’s wild': Noida man turns cigarette butts into teddy bears in viral video, watch
London Airport evacuates passengers over security threat, thousands stranded
The World’s First Innovative Iron Supplement to Combat Iron Deficiency and Anaemia
Meet grandmother who became fashion icon after trying on her granddaughter’s clothes
IND vs AUS: Rishabh Pant joins Virat Kohli, Rohit Sharma in elite WTC list, becomes 3rd Indian to...
'All scripted drama...': Puneet Superstar allegedly assaulted by influencers in viral video, watch
Actress Ana de Armas caught kissing Cuban President Miguel Díaz-Canel’s son in viral photos
Oreshnik's Shadow: Will Russia's hypersonic missile force west to back down?
‘You’re So Beautiful’: World’s tallest woman meets world’s shortest woman over tea, pics go viral
Delhi-NCR Air Pollution: Consequences of GRAP-4 are drastic, may have adverse effects, says SC
Delhi-NCR Air Pollution: Schools likely to stay closed till..., check city-wise update
Maharashtra: 3 killed, 9 hospitalised after gas leak at fertiliser plant in Sangli
THIS farm is selling a cup of coffee for Rs 28000, but there's a twist, it is...
Chhattisgarh: 10 Maoists killed after encounter with security personnel in Sukma
Mukesh Ambani's SUPERHIT plan for Jio users, offers unlimited 5G access for 1 year for just Rs...
IND vs AUS 1st Test: KL Rahul's dismissal sparks DRS controversy in Perth Test
Dense fog, heavy rain predicted in these states till November 25; check here
Oreshnik Hypersonic Missile: Which nations are within its range?
Bihar teacher, principal reach school in drunken state; know what happened next
'I have faced a lot of...': Arjun Kapoor REVEALS his biggest fear amid break up with Malaika Arora
How millions of Indians may get affected due to US indictment of Gautam Adani in bribery case
Amid divorce rumours with Aishwarya Rai, Abhishek Bachchan says 'missing someone is okay but...'
After Bibles, watches and sneakers, Donald Trump is now selling autographed guitars, price is...
Delhi pollution: Air quality improves to ‘very poor’ category, AQI at...
Vladimir Putin's BIG threat, warns he could strike UK with new ballistic missile if...
Shillong Teer Results TODAY November 22, 2024 Live Updates: Check winning numbers here
Somebody misbehaved with Alia Bhatt on Highway sets then Imtiaz Ali had to...
Zomato CEO Deepinder Goyal reveals twist behind Rs 200000 job fee, closes application window
Days after Ratan Tata's demise, Tata Group's Rs 131000 crore company inks pact with ADB for...
WATCH: Woman makes Biryani with Parle-G biscuits, viral video fumes internet
Only train in India in which passengers can travel for FREE; check route, timings and more
'Justice for biryani': Parle-G biryani takes internet by storm, video goes viral
DNA TV Show: Why Gautam Adani charged with bribery and fraud in US
IND vs AUS: Records Virat Kohli can break during Border-Gavaskar Trophy