In a major relief for the mutual fund industry, the Securities and Exchange Board of India (SEBI) has banned pool accounts for transactions in mutual funds. This regulation is intended to increase the protection of investors and add more transparency. Now, nobody, not even brokers or platforms can collect money from investors first and then transfer it to mutual fund companies tasked with holding the pool of cash. In this article, we will tell you about pool accounts for mutual funds, banning of pool accounts for mutual fund transactions, why SEBI banned it, and the impact it has on investors.
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