As per the circular dated 4th October 2021, The Securities and Exchange Board of India (SEBI)  had announced the discontinuation of using pool accounts for Mutual Funds transactions with its effect from 1st July 2022. As a result, the mechanism to Buy/Redeem the mutual fund schemes has been changed. To ensure uniformity in the mutual fund industry for both Demat and Non-Demat transactions, the regulators have taken this measure to avoid intervention by intermediaries.

Old and New process for Buying Mutual Fund schemes in FYERS Direct:

Earlier clients added funds to the FYERS Trading Account through UPI, NEFT, or Net Banking or allocated the funds available in the trading account to buy the mutual funds.

Now, clients who wish to Buy Mutual Fund schemes will not be able to allocate the funds from their trading account or be able to add funds to their trading account. In lieu of this, clients must purchase their desired mutual fund schemes and pay them directly to the BSE by using UPI, NEFT, or Net Banking.

Old and New process for Selling/Redeeming Mutual Fund schemes in FYERS Direct:

Earlier clients had to place the redemption request on FYERS Direct and authorize the order using EDIS as per scheme type (different schemes will have different redemption T&C). Once the funds are credited into the trading account, clients can withdraw the funds to their Bank account.

Now, clients must place the redemption request on FYERS Direct and authorize the transaction using EDIS. However, based on the scheme type, the funds will be directly credited to the clients' primary bank account.

Note: There are no changes in the mechanism for ongoing Existing SIP.