The Securities and Exchange Board of India (SEBI) has issued a circular introducing a voluntary lock-in or debit freeze facility for mutual fund investors across both demat and non-demat (statement of account) folios, so that no units can be debited until the folio is unlocked. In the first phase, registrar and transfer agents (RTAs) will provide the folio locking feature through the MF Central interoperable RTA platform. The facility will be available only to KYC-complied (registered or validated) investors with both a valid email ID and mobile number. The Association of Mutual Funds in India (AMFI) will prescribe the detailed locking and unlocking process for AMCs and RTAs, including processes for different types of investors after consultation with SEBI, and will also define which financial and non-financial transactions are permitted during the lock-in period. All AMCs and RTAs must disclose the opt-in process and the impact on transactions on their websites and in the Statement of Additional Information. The circular takes effect from 30 April 2026.
Securities & Exchange Board of India 2026-03-06
Securities and Exchange Board of India introduces voluntary debit freeze facility for mutual fund folios effective 30 April 2026
SEBI has introduced a voluntary lock-in facility for mutual fund investors, applicable to both demat and non-demat folios, preventing unit debits until unlocked. Initially available through the MF Central platform, this feature is limited to KYC-compliant investors with valid contact details. The Association of Mutual Funds in India will outline the locking process and permissible transactions during the lock-in period.