Fifteen asset management companies, including PPFAS Mutual Fund, have rolled out a voluntary lock-in facility for mutual fund folios. The feature allows investors to temporarily block withdrawals and debits. Introduced by Sebi, it aims to provide enhanced safety and control.
Mutual fund investors in India can now opt for a voluntary lock-in on their folios to prevent unauthorized withdrawals and debits. Fifteen asset management companies (AMCs), such as PPFAS Mutual Fund, ICICI Prudential Mutual Fund, Groww Mutual Fund, and BNP Paribas, have implemented this Sebi-introduced framework. The facility applies to both demat and non-demat holdings, giving investors greater control over their investments. Sebi's rule enables users to activate the lock-in through MF Central, a centralized platform for mutual fund services. This debit freeze option enhances security amid rising concerns over fraud in financial portfolios. PPFAS Mutual Fund is among the early adopters rolling out the feature to its clients. The move comes as part of broader efforts by India's markets regulator to bolster investor protection. Keywords associated with the rollout include ITI, LIC, Helio Mutual Fund, TrustMF, and PGIM Mutual Fund, indicating wide participation across the industry.