Discontinuation of pooling: mutual fund transactions must use direct investor pay in/pay out and direct unit crediting. Pooling of funds and units by stock brokers/clearing members for mutual fund transactions is discontinued; pay in/pay out must be received from and made to investor accounts directly by the clearing corporation, and units must be credited/debited directly to/from investors' demat or folio accounts. Stock brokers/clearing members must not accept or handle investor funds or units in proprietary or pool accounts nor accept mandates or payments in their own name, while AMCs remain responsible for PMLA compliance and may use clearing corporations to validate investor source bank accounts.
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.
Discontinuation of pooling: mutual fund transactions must use direct investor pay in/pay out and direct unit crediting.
Pooling of funds and units by stock brokers/clearing members for mutual fund transactions is discontinued; pay in/pay out must be received from and made to investor accounts directly by the clearing corporation, and units must be credited/debited directly to/from investors' demat or folio accounts. Stock brokers/clearing members must not accept or handle investor funds or units in proprietary or pool accounts nor accept mandates or payments in their own name, while AMCs remain responsible for PMLA compliance and may use clearing corporations to validate investor source bank accounts.
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