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The Securities and Exchange Board of India (SEBI) has placed restrictions on the mutual funds industry from issuing new fund offers (NFO) to give the industry time to comply with the new norms.
SEBI has directed all the stakeholders like mutual fund distributors, investor advisors, and other such online platforms to refrain from pooling accounts to transfer the funds to any assets management company for purchasing schemes of these investors. This is being done to make sure that the money remains safe. The regulator wrote a letter to the Association of mutual funds in India (AMFI). It asked the industry to comply with the circular, which directed the agencies to use two-factor authentication to retrieve mutual funds and verify the source accounts when the investments are made
SEBI stops NFOs in mutual funds
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