Sebi Expands Two-Factor Authentication for Mutual Fund Subscription Transactions

0
50
Sebi Expands Two-Factor Authentication for Mutual Fund Subscription Transactions
google news

By PTI Sep 30, 2022, 11:47 p.m. IST (Released)

mini

The new framework will come into effect on April 1, 2023, the Securities and Exchange Board of India (Sebi) said in a circular.

To further safeguard investors’ interest, capital markets regulator Sebi on Friday decided to expand two-factor authentication for subscription transactions in mutual fund shares.

The new framework will come into effect on April 1, 2023, the Securities and Exchange Board of India (Sebi) said in a circular.

Currently, all asset management companies (AMCs) are required to authenticate redemption transactions using two-factor authentication for online transactions and a signature method for offline transactions.

“It has now been decided to also extend two-factor authentication to subscription transactions in mutual fund shares,” Sebi said.

In the case of subscription and redemption of units, a two-factor authentication (for online transactions) and a signature method (for offline transactions) will be used for authentication.

One of the factors of such authentication for non-demat transactions will be a one-time password sent to the unitholder at his email address or telephone number registered with the AMC.

In case of demat transactions, the two-factor authentication process as defined by the custodians will be followed.

Sebi clarified that in case of systematic transactions, the requirement of such authentication will only be applicable at the time of registration.

cnbctv18-forexlive

google news
Previous articleHigh school football: Max Ritter’s field goal lifts Rosemount past Lakeville South in battle of heavyweights
Next articleCalifornia Governor Gavin Newsom signs bill restricting use of rap lyrics as evidence in criminal cases