COIN TPIN in STPs and MF Transaction Flexibility

[Sayantan2003]

If I set up an STP on Coin, do I have to authorize using TPIN every time on the STP date, if I don’t want to give PoA or DDPI?

Also, will future regulations allow more flexibility in Demat format mutual fund transactions, similar to how STPs and SWPs work in the Statement of Account (SoA) format?

[Arjun_Oberoi]

@Sayantan2003

If I set up an STP on Coin, do I have to authorize using TPIN every time on the STP date, if I don’t want to give PoA or DDPI?

Yes, you’ll need TPIN authorization for each STP transaction on the scheduled dates if PoA/DDPI is not enabled.

@Sayantan2003

Also, will future regulations allow more flexibility in Demat format mutual fund transactions, similar to how STPs and SWPs work in the Statement of Account (SoA) format?

For SoA format, the units are managed in folio mode, for which authorization is not required.

However, in the demat format, similar to how Equity works, every debit of mutual fund units from a demat account requires authorization (via TPIN & its OTP) or through DDPI, as mandated by regulation.

Also, the STP mechanism on Coin works differently from the traditional STP across the industry. More details here:

@Neelesh

Typically, STP allows transfers only within funds managed by the same AMC. However, on Coin, you can set up STP across funds from different AMCs, giving a user more flexibility just that, unlike traditional STP, the amount is first credited to your bank account, and then using a mandate, it is pulled back from the user’s bank account and invested in the SIP scheme.