Discontinuation of usage of pool accounts for transactions in the units of Mutual Funds, Two Factor Authentication (‘2FA’) for redemption and other related requirements: Extension of timeline

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..... s for transactions in the units of Mutual Funds, Two Factor Authentication ( 2FA ) for redemption and other related requirements: Extension of timeline 1. Based on discussions with stakeholders and recommendations of the Mutual Fund Advisory Committee, SEBI, vide circular no. SEBI/HO/IMD/IMD-I DOF5/P/CIR/2021/635 dated October 4, 2021 and circular no. SEBI/HO/IMD/IMD-I DOF5/P/CIR/2021/634 dated October 4, 2021 discontinued intermediate pooling of funds and/or units in Mutual Fund transactions by stock brokers / clearing members on Stock Exchange platforms and by other entities including online platforms, respectively. The provisions of the said Circulars were to come into effect from April 01, 2022. Subsequently, for smooth implemen .....

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..... 5. The AMCs, recognised Stock Exchanges, Depositories, recognised Clearing Corporations and Registrar to an Issue and Share Transfer Agents shall take necessary steps for implementing the Circulars (along with the clauses relating to 2FA for redemption and source account verification) including the required processes and systems to ensure compliance with the provisions of the Circulars . Stock Exchanges/Clearing Corporations and AMCs are also advised to ensure strict adherence to the activity wise timelines given at Annexure A. 6. Stock Exchanges and Depositories are directed to bring the provisions of this circular to the notice of their members / participants, disseminate the same on their websites and ensure strict adherence .....

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..... rameters / Task Timeline 1. All intermediate pooling will stop from 1 st April 2022 -- 2. Signing of Agreements with Payment Aggregators (PAs) and Banks 1st May 2022 3. Verification / validation of email and mobile for new folios / new email IDs and mobile numbers. Validation of the entire existing database of email IDs and / or mobile numbers will be taken up progressively w.e.f. 1 st May 2022 1st May 2022 4. Enhanced TPV with independent traceability of source bank account information 1st June 2022 5. 2FA for onlin .....

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