The Securities and Exchange Board of India (SEBI) on March 31, 2022 has issued Notification regarding Extension of timeline for Discontinuation of usage of pool accounts for transactions in the units of Mutual Funds, Two Factor Authentication (‘2FA’) for redemption and other related requirements.
The following timeline has been stated namely: -
• The following Stock Exchange Platforms have extended their timeline to July 1, 2022 namely: -
1. Discontinuation of Pooling of Funds and Units
2. Other processes including Third Party Verification (TPV), Two Factor Authentication (2FA), and verification of key investor details as applicable to the SE platforms.
3. Standardizing the recipients and contents of information at various stages of transaction processing.
• The following Non Stock Exchange Platforms have extended their timeline to May 1, 2022 namely: -
1. Signing of Agreements with Payment Aggregators(PAs) and Banks.
2. 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.
3. Enhanced TPV with independent traceability of source bank account information.
4. 2FA for online redemptions.
5. Standardizing the recipients and contents of information at various stages of transaction processing.
[Notification No. SEBI/HO/IMD/IMD-I DOF5/P/CIR/2022/41]
