Top

Mutual Fund Agent in Kolkata On SEBI’s 1 July Pool Account Ban


Mutual Fund Agent in Kolkata On SEBI’s 1 July Pool Account Ban

SEBI (Securities and Exchange Board of India) has brought a new rule into force as of 1 July 2022. The new rule states that the use of pool accounts will be discontinued for mutual fund transactions. This mutual fund agent in Kolkata, Money Assist, tells you the details regarding the same and how you can invest your money in mutual funds going forwards. Let’s begin!

mutual fund agent in Kolkata

What is a pool account?

A pool account is a type of electronic wallet facility provided by the brokers. Individual investors can store money in these accounts and then transfer them to purchase mutual fund units. However, from 1 July 2020, this method will not be allowed. Money will go directly from the investor’s bank account to the AMC.

What does SEBI’s rule say?

SEBI’s rule says that all stock brokers, mutual fund distributors, advisors, and other service providers will have to stop the pooling of funds to purchase mutual funds. The money will now go directly from an investor’s account to the mutual fund house’s account directly. The money cannot and will not go to the broker or MF platform’s account first.

What changes exist for those who are investing via pool accounts?

For those who were using pool accounts, here are the changes that will come into play:

  • Pool accounts will be restricted for one-time investments, SIP and redemptions.
  • Amount from redemption will now be directly transferred to your bank account.

This mutual fund agent in Kolkata Money Assist does not make use of pool accounts. Hence you can choose to invest with us today.

Why has SEBI ordered this rule?

SEBI has ordered this rule to ensure that funds in a pool account are not misused.

What are some of the problems that need to be resolved?

With the implementation of this rule, mutual fund investors and distributors have expressed their concerns such as delayed confirmation about allotted units, inability to pay via cheque, NEFT, RTGS, and SIP transaction failures among others.

What will SIP investors do now?

As per the SEBI guideline, this mutual fund agent in Kolkata says that SIP investors need to sign up for a fresh National Automated Clearing House (NACH), which can be done online.

Lastly, the regulator has mandated the use of double-factor authentication. Hence, the details such as the email-id and the phone number need to be accurate at the folio level.

mutual fund agent in Kolkata

Conclusion

Money Assist, a premier mutual fund agent in Kolkata DOES NOT make use of pool accounts. Hence you can shift your investment portfolio to this agent and enjoy the ease of transactions in purchasing mutual funds. Moreover, SEBI had also asked mutual fund houses to stop issuing New Fund Offers or NFOs so that the transition process could occur smoothly.