As the financial year (FY23) comes to an end in a few days, the new financial year (FY24) will begin on April 1, 2023, bringing along some changes in rules and regulations for mutual fund investors. The following are the most important changes that will take place.
Firstly, mutual fund investors will have to declare their nominee or opt out by March 31; otherwise, their investment will be frozen, and they will not be able to redeem any of their investment. This process can be done online through Registrar and Transfer Agents like KFintech and CAMS or through MFCentral.
Secondly, it is mandatory for everyone to link their PAN and Aadhaar by March 31. This becomes even more important for mutual fund investors as failure to do so will render their PAN invalid from April 1, which may lead to restrictions on their MF folios.
Thirdly, while redeeming investments, OTP was previously required; however, starting from April 1, it will also be required while investing in mutual funds. SEBI has introduced new rules in this regard, and investors will receive OTP on their mobile number and email address.
Lastly, investors who used Aadhaar for KYC before November 1 will have to revalidate their KYC before April 30. SEBI has issued a circular in this regard.
(It is important to note that investing in mutual funds is subject to market risks and investors should always seek expert advice before investing their money. This information is provided for informational purposes only.)
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