In order to promote digital security of units of Mutual Fund investors, in consultation with Association of Mutual Funds in India (AMFI), it is decided that a voluntary debit freeze facility be introduced for Mutual Fund investors across demat and non-demat (i.e., Statement of Account) folios to ensure that no units shall be debited from such folios till the time they are unlocked. In the first phase, the facility to lock the folio shall be provided to mutual fund investors by the Registrar and Transfer Agents of Mutual Funds (RTAs) through MF Central platform. The facility shall be enabled only for KYC complied (Registered / Validated) investors having valid Email ID and Mobile number (both mandatory). AMFI shall prescribe the detailed process for locking and unlocking of folios to all AMCs / RTAs and shall also provide the processes to be followed by different types of investors after due consultation with SEBI. AMFI is also advised to prescribe the detailed list of financial transactions and nonfinancial transactions that are allowed during such lock-in period to AMCs / RTAs. The detailed process of opting for such a facility and impact on different financial transactions and non-financial transactions during the lock in period shall be disclosed by all AMCs / RTAs on their websites and in Statement of Additional Information (SAI). The provisions of this circular will come into effect from April 30, 2026.
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