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ARTICLE · 23 MARCH 2026

SEBI Introduces Voluntary Debit Freeze Facility To Mutual Fund Folio

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SEBI by way of circular dated 06.03.20261 (“MF Circular”), has introduced a voluntary lock in / debit freeze facility for Mutual Fund (“MF”) folios.

IndiaFinance and Banking
Sagus Legal LLP
Sagus Legal LLP

SEBI by way of circular dated 06.03.20261 (“MF Circular”), has introduced a voluntary lock in / debit freeze facility for Mutual Fund (“MF”) folios.

SEBI, in consultation with the Association of Mutual Funds in India (“AMFI”), has introduced a voluntary debit freeze facility for MF investors across demat and non-demat (i.e., Statement of Account) folios, to ensure that no units shall be debited from such folios until they are unlocked. The key aspects of the MF Circular are as follows:

  1. Availability of the Facility: In the first phase, the facility to lock the folio shall be provided to MF investors by the Registrar and Transfer Agents (“RTAs”) through the inter-operable RTA platform, MF Central. The facility shall be enabled only for KYC compliant (Registered/ Validated) investors having a valid Email ID and Mobile number (both mandatory).

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