India’s markets regulator introduces voluntary lock-in facility for mutual funds
- SEBI will introduce the lock-in facility through MF Central
India’s markets regulator on Friday said it would introduce a voluntary debit freeze facility for mutual fund investors, aimed at strengthening the digital security of their holdings from April 30, 2026.
The facility will allow investors to freeze any debits from their mutual fund portfolios, preventing units from being transferred or redeemed until investors unlock them, the Securities and Exchange Board of India (SEBI) said in a circular.
SEBI will introduce the lock-in facility through MF Central, a unified digital platform for mutual fund investments.
In the initial phase, the facility to lock the folio will be provided to mutual fund investors by registrar and transfer agents (RTAs) through the MF Central platform.
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SEBI has directed the Association of Mutual Funds in India (AMFI) to devise the process to lock and unlock portfolios for asset management companies and RTAs.
Equity mutual funds, among the most popular categories, have seen uninterrupted monthly inflows since February 2021, supported by systematic investment plans (SIPs), government reforms and a supportive central bank policy.
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