From today, the Securities and Exchange Board of India (SEBI) has not permitted the use of funds in the trading account for investment in Mutual Funds (MFs). Hence, there has been a problem with mutual fund transactions on Zerodha’s Coin app.
“We rely on BSE Star MF for power transactions on Sikka and BSE has created the system to process payments and transactions based on new rules yesterday. But currently we are using BSE Star MF on Sikka due to issues with the platform. We are facing significant issues with the processing of transactions. We are in touch with BSE to resolve the issues at the earliest. “We are sorry for the inconvenience caused,” the online brokerage firm said.
If you have paid for your AMC SIP through the payment link shared by BSE then you do not need to pay again with Sikka, zerodha Said further. “Your orders will be processed today. However, for future transactions please pay through Coin App and ignore any emails sent by BSE. SIPs scheduled today will not be operational.”
Funds in Zerodha account cannot be used for mutual fund investments starting from July 1, 2022 mutual fund The purchase will have to be transferred from the Zerodha linked primary bank account to ICCL,” the online brokerage firm said in an FAQ, adding that the redemption proceeds would also be credited to the investor’s primary bank account.
The new payment flow on the Coin app is as follows: Pay for minimal orders via UPI Through Netbanking for orders above 2 lakhs 2 lakhs and NEFT or RTGS have payment modes to be used for orders above 1 crore, it added.
Till now, whenever investments were made in mutual funds, money was deducted from the investor’s trading account just like shares. But, from today, the pooling of funds and/or units in any form or manner by the stockbrokers for mutual fund transactions shall be discontinued.
The money has to move from the investor’s bank account to the mutual fund house’s bank account, as mandated by the Securities and Exchange Board of India (SEBI) as all transaction platforms supported by stock exchanges will implement the same.