The new financial year (FY24) will begin on April 1, 2023, bringing with it a few new rules and regulations for mutual fund investors as the financial year (FY23) comes to an end in a few days. The most significant changes that will occur are listed below.
To begin, investors in mutual funds will be required to either declare their nominee or opt out by March 31; if not, their venture will be frozen, and they can not recover any of their speculation. This procedure can be completed online through MFCentral or Registrar and Transfer Agents like KFintech and CAMS.
Second, by March 31, everyone must connect their PAN and Aadhaar. This becomes even more crucial for investors in mutual funds because failing to do so will result in the invalidation of their PAN on April 1, putting restrictions on their MF portfolios.
Thirdly, OTP was previously required to redeem investments; However, as of April 1, it will also be required for mutual fund investments. Investors will receive OTP on their mobile number and email address as a result of SEBI’s new rules in this area.
Last but not least, investors who used Aadhaar for KYC prior to November 1 will need to revalidate it by April 30. In this regard, a circular has been issued by SEBI.
(It is essential to keep in mind that investing in mutual funds involves taking on risks associated with the market, and prior to making any investments, investors should always seek expert advice. This data is accommodated educational purposes as it were.)
