In a bid to promote the digital security of units of investors in Mutual Funds, the capital market regulator SEBI has introduced a voluntary debit freeze facility across demat and non-demat folios.
The move will ensure that no units are debited from such folios until they are unlocked. The facility will come into effect from April 30.
In the first phase, the RTAs will provide the facility to lock the folio to investors through the MF Central platform.
It will be enabled only for KYC-compliant investors with valid email IDs and mobile numbers, SEBI said.
AMFI will prescribe the detailed process for locking and unlocking of folios to all AMCs / RTAs and will also provide the processes to be followed by different types of investors after due consultation with SEBI.
AMFI is also advised to prescribe a detailed list of financial and non-financial transactions that may be allowed during the lock-in period to AMCs/RTAs.