Extension of timeline for discontinuation of pool accounts and 2FA
Summary
SEBI extends the applicability date of previous circulars regarding the discontinuation of pool accounts and Two Factor Authentication for redemptions to July 1, 2022. The regulator modifies specific clauses to restrict new mandates exclusively to subscriptions for mutual fund units after the extended deadline. All relevant entities are directed to implement these changes and adhere to the activity-wise timelines provided in Annexure A.
Text
it has been decided to extend the date of applicability of “Circulars” including the clauses relating to 2FA for redemption and source account verification to July 01, 2022.
On or after July 01, 2022, new mandates shall be accepted only in favour of SEBI recognized Clearing Corporations and those mandates shall exclusively be for subscriptions to units of Mutual Fund schemes and not for any other purpose.
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”... including the required processes and systems to ensure compliance with the provisions of the “Circulars”.
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 to the timelines.
All other requirements of the Circulars dated October 4, 2021 and March 15, 2022 shall remain unchanged.
This circular is issued in exercise of powers conferred under Section 11 (1) of the Securities and Exchange Board of India Act, 1992, read with the provisions of Regulation 77 of SEBI (Mutual Funds) Regulations, 1996...
Source: SecMarx — Extension of timeline for discontinuation of pool accounts and 2FA. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.