Nov 14, 2010

Mutual Fund Updates: Regarding Restriction on acceptance of third party payment instruments in Mutual Fund Schemes

We draw your attention to important changes with regards to purchase and redemption of mutual fund units. All Mutual Fund Companies will now be verifying bank accounts and rejecting third party payments for mutual fund transactions

1. Change of bank account:
When a change of bank account request is received along with the redemption request, the Mutual Fund does not get adequate time to validate the changed bank account details. There is a risk of redemption proceeds being transferred to a wrong account because of an error in capturing bank account details.
In view of the above, a new practice will be followed effective 15th November 2010 as outlined below for all change of bank account requests:
Mutual Fund Company will validate and register the bank account within seven calendar days from the date of submission of request at AMC branches/collection centers. Any redemption placed along or during this period shall ordinarily be issued to the earlier bank account registered in the records. However, on specific requests, this will be issued to the new bank account after the verification and validation process is done at AMC end.

2. Non-acceptance of Third Party Payments for mutual fund subscriptions effective November 15, 2010

When payment is made from a bank account other than that of the beneficiary investor, the same is referred to as a "Third Party Payment". Third party cheques carry inherent identity risks. Thus, we will henceforth be rejecting any subscription payments received from a third party.

In case of payments from a bank account which is jointly held, the first holder of the mutual fund subscription has to be one of the joint holders of the bank account from which the payment is made.

Investors are required to mention the details of the bank account from where the payment for subscription is being made in the subscription form. The details required are - bank account number, bank name and the cheque / demand draft number.

--- Safe Invest India (Information Services)

Contact Us

Email: | Phone: 0-981-826-9396 | Fill Inquiry Form Click Here

Invest Online

For Quick Navigation

54EC Bonds AA Rated AA+ BONDS AA+ FD AAA RATED Allotment Status Asset Allocation Assured Return Project Bhiwadi Real Estate Bonds BSLI Capital Gain Bonds Capital Protection Funds Commercial Property Company FD News corporate fd Corporates Debenture Debt Funds Delhi Real Estate DHFL Dwarka Expressway Economy Updates Faridabad Real Estate FD Schemes Financial Planning FIXED DEPOSIT RATES Fixed Maturity Plans FMP Fund Manager Speaks Ghaziabad Real Estate GOLD Government Saving Schemes Greater Noida Real Estate Guest Article Gurgaon Real Estate HDFC Health Insurance Health Policy home loans IIB Inflation Indexed Bonds Infrastructure Bonds Investor Guide IPO Updates Jaiprakash Fixed Deposit Latest FD Schemes Life Insurance Plans Liquid Fund Ludhiana Real Estate Mahindra Finance FD Manufacturing Companies FD Market Updates Mediclaim Policy MF ELSS MF Schemes Mutual Funds NABARD Bonds NBFC Fixed Deposits NCD NCD Issue NCD Listing New Launch NFO's Noida Extn Noida Real Estate Non Rated FD NRI Fixed Deposits NRI Investments online mutualfunds PAN Card Procedure PE Fund Plots PMS PNB Housing Post Office Schemes Private Equity Fund Private Placement PSU Bonds Public Issue Rated FD Schemes RBI Bonds Real Estate Fixed Deposits Real Estate Fund Reality Retirement Planning RGESS Secured Bonds Secured NCD Shriram Transport Deposits SIP SIP Recommendation Small Saving Sohna Real Estate STFC Deposits Tax Free Bonds Tax Saving Schemes Tax Saving Tips Union Budget 2013 Unitech Fixed Deposits Updates in FD Rates Yamuna Expressway

Post your Queries with Name, Contact Number & Scheme interested in.

Click Here - Contact Us We will give you a call back.

For Fixed Deposits


The information contained and provided on this Website provides Investment advice for the education of investors. The posts are an information service only. Recommendations, opinions or suggestions are given with the understanding that readers acting on this information assume all risks involved. We do not assume any responsibility or liability resulting from the use of such information, judgment and opinions for Trading or Investment purposes.