SEBI Discontinues Usage Of Pool Accounts For Mutual Fund Transactions
NDTV
Securities and Exchange Board of India (SEBI) on Monday decided to ban the usage of pool accounts for mutual fund transactions.
New Delhi: Securities and Exchange Board of India (SEBI) on Monday decided to ban the usage of pool accounts for mutual fund transactions. Market regulator SEBI, in its notification, stated that pooling of funds by stock brokers, MF distributors and investment advisers will be discontinued from April 1 next year.
SEBI said the step has been taken "to protect the interest of investors in securities."
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The regulator told asset management companies (AMCs) to ensure that funds pay-in should be directly received by the clearing corporation from the investor account and funds pay-out should be directly made to the investor account. "Pay-in/pay-out of funds shall not be handled by the stock brokers or clearing members."
