The extension of the deadline is intended to facilitate an efficient technology overhaul and its smooth transition
The extension of the deadline is intended to facilitate an efficient technology overhaul and its smooth transition
The Securities & Exchange Board of India (SEBI) has extended the existing deadline of April 1, 2022 for the implementation of the suspension of account merging to July 1, 2022. The extension of the deadline is intended to facilitate an efficient technology refresh and its smooth transition to meet the growing needs of investors. The pooling of investor funds and shares by stockbrokers and clearing brokers in any form or manner and by mutual fund investment advisers/distributors (wherever it occurred) for mutual fund transactions should cease as of April 1st. However, after mutual discussion and agreement , SEBI has granted the mutual fund industry an extended deadline of July 1st to allow the MF industry to achieve a high level of operational efficiency in the interests of investors and efficient functioning of MF subscriptions and – to achieve redemptions, said the Association of Mutual Funds in India (AMFI). . “We are confident that the implementation can be accelerated with the introduction of new age technology and with the help of other stakeholders such as exchanges and distributors, so that we can continue to strengthen investor service and their evolving savings needs versus newer mutual fund solutions. A. Balasubramanian, Chairman of AMFI, said: “In order to remain focused on the efficient and effective implementation of the said October 4, 2021 SEBI circular, we as an investment fund industry have agreed to put the launch of new fund offerings (NFOs) on hold during this time this time,” said NS Venkatesh, Chief Executive of AMFI. “We are confident that NFOs will soon be back on track”
