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Discontinuation of usage of pool accounts for transactions in units of Mutual Funds on the Stock Exchange Platforms - SEBI - SEBI/HO/IMD/IMD-I DOF5/P/CIR/2021/635

Extract

..... okers and clearing members respectively, by using stock exchange infrastructure. Presently, funds and / or units of the mutual fund schemes move through stock brokers’ / clearing members’ pool accounts in an aggregate manner to client account or Clearing Corporation/ AMC account, as the case may be. 2. In addition to the above, SEBI, vide circular CIR/MRD/DSA/32/2013 dated October 04, 2013 and circular SEBI/HO/MRD/DSA/CIR/P/2016/113 dated October 19, 2016, allowed Mutual Fund Distributors (‘MFDs’) and Investment Advisers (‘IAs’) to use the infrastructure of the stock exchanges to purchase and redeem mutual fund units on behalf of their clients. 3. Based on discussions with stakeholders and recommendations .....

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Discontinuation of usage of pool accounts for transactions in units of Mutual Funds on the Stock Exchange Platforms - SEBI

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..... ctive SEBI recognized Clearing Corporations or mutual fund scheme(s) only; iii. not accept or handle funds or units of investors in their proprietary accounts or pool accounts in any form or manner; and iv. not accept payment through one-time mandate or issuance of mandates/ instruments in their name for mutual fund transactions. However, one-time mandates in favour of SEBI recognized Clearing Corporations may be accepted. 5. The onus of compliance with PMLA provisions and not permitting transactions with third party bank account continues to lie with the AMCs. AMCs may avail the services of SEBI recognized Clearing Corporations to validate the investors’ source bank account information. In such cases, Clearing Corporation shall make .....

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Discontinuation of usage of pool accounts for transactions in units of Mutual Funds on the Stock Exchange Platforms - SEBI

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..... ines. 8. It is reiterated that in terms of Regulation 4 (g) of SEBI (Investment Advisers) Regulations, 2013, stock brokers are required to comply with general obligations and responsibilities specified in Chapter III of SEBI (Investment Advisers) Regulations, 2013, which, inter-alia, provide that client level segregation of advisory and distribution activities needs to be ensured at the entity and group level. 9. Stock Exchanges and Depositories are directed to bring the provisions of this circular to the notice of their members / participants and also disseminate the same on their websites. 10. The AMCs, recognised Stock Exchanges, Depositories and recognised Clearing Corporations shall take necessary steps including putting the required s .....

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Discontinuation of usage of pool accounts for transactions in units of Mutual Funds on the Stock Exchange Platforms - SEBI

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