Maintenance of Current Accounts in multiple banks by Mutual Funds

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....ds in India (AMFI) Sir / Madam, Subject: Maintenance of Current Accounts in multiple banks by Mutual Funds 1. Mutual funds currently maintain current accounts in multiple banks including in banks having presence beyond the top 30 cities ("B-30 cities"), for receiving subscription amount and for payment of redemption proceeds / dividend / brokerage/ commission etc. This enables investors t....

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.... akin to buy back or repurchase of shares. Considering the above, industry has requested SEBI to issue instructions for mutual funds in respect of maintenance of current accounts in multiple banks. 4. Based on the request of mutual fund industry, it is clarified that mutual funds should maintain current accounts in an appropriate number of banks for the purpose of receiving subscription amount ....