As per SEBI circular no. SEBI/HO/IMD/IMD-I DOF5/P/CIR/2021/635 dated 4th October 2021, the usage of a common fund wallet (pool account) for Stocks and Mutual Funds transactions will be discontinued. What does this mean? Earlier you could invest in a Mutual Fund via funds in your Upstox account. And on redemption/sale of units the funds would..
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As per SEBI circular no. SEBI/HO/IMD/IMD-I DOF5/P/CIR/2021/635 dated 4th October 2021, the usage of a common fund wallet (pool account) for Stocks and Mutual Funds transactions will be discontinued.
What does this mean?
Earlier you could invest in a Mutual Fund via funds in your Upstox account. And on redemption/sale of units the funds would be credited to your Upstox account from where you could place a withdrawal request.
However, as per the above mentioned SEBI circular, while you can invest in a Mutual Fund from the Upstox platform, the funds for buying Mutual Fund units will be deducted directly from your registered bank account. And on redemption of these units they will be credited to your registered bank account.
What to keep in mind?
Due to the above change keep the following pointers in mind -
- You can continue to invest in Mutual Funds from the Upstox mobile and web platforms
- You can continue to use your Upstox account for investing and trading in Stocks, F&O, Commodity and Currency segments
- A DP (Depository Participant) charge of ₹20 is applicable on redemption of Mutual Fund units. This will be deducted from your Upstox wallet
and not from your bank account. So ensure you have sufficient funds to successfully redeem your units.
- To comply with this change, we will be conducting a maintenance activity on our platform from 2:30 PM on 31st March to 10:00 PM on 1st April 2022. As a result, during this time you will not be able to buy/sell any Mutual Fund units. Existing SIP transactions will remain unimpacted during this time.
To know more, refer to the circular
here.