Maintain current A/Cs in 'appropriate number' of banks: Sebi to mutual funds

Markets regulator Sebi on Wednesday asked mutual funds to maintain current accounts in an appropriate number of banks for receiving subscription amount and payment of redemption and dividend. The move is aimed at facilitating financial inclusion, convenience of investors and ease of doing business, the Securities and Exchange Board of India (Sebi) said in a circular.

"Based on the request of mutual fund industry, it is clarified that mutual funds should maintain current accounts in an appropriate number of banks for the purpose of receiving subscription amount and for payment of redemption/dividend/brokerage/ commission etc," Sebi said.