Mutual fund transactions via stock exchange infrastructure now permit non demat processing while retaining direct pay in/pay out safeguards. Permits mutual fund transactions through recognised stock exchange infrastructure to include non demat transactions while preserving the prohibition on distributors handling pay in and payout of funds and units. Exchanges and clearing corporations must ensure funds pay in are received directly by the recognised clearing corporation and payouts are made directly to investor accounts; under the demat model, units are credited and debited from investors' demat accounts. Other provisions of the prior circular remain unchanged.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Mutual fund transactions via stock exchange infrastructure now permit non demat processing while retaining direct pay in/pay out safeguards.
Permits mutual fund transactions through recognised stock exchange infrastructure to include non demat transactions while preserving the prohibition on distributors handling pay in and payout of funds and units. Exchanges and clearing corporations must ensure funds pay in are received directly by the recognised clearing corporation and payouts are made directly to investor accounts; under the demat model, units are credited and debited from investors' demat accounts. Other provisions of the prior circular remain unchanged.
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