SEBI Introduces Voluntary Debit Freeze Facility for Mutual Fund Investors

The Securities and Exchange Board of India (SEBI) has introduced a voluntary debit freeze facility for mutual fund investors, effective from April 30. This feature allows investors to temporarily lock their mutual fund folios, both demat and non-demat, preventing any withdrawals or debits until unlocked. Available through the MF Central platform, the facility requires KYC compliance and valid email and mobile registration. The Association of Mutual Funds in India (AMFI) will define operational details and permitted transactions during the lock period to enhance digital security and prevent unauthorized transactions.