# Discontinuation of pooling for mutual funds and how it affects Coin **URL:** https://tradingqna.com/t/discontinuation-of-pooling-for-mutual-funds-and-how-it-affects-coin/120947 **Category:** Coin - Direct MF **Created:** [October 26, 2021, 7:28am UTC](https://tradingqna.com/t/discontinuation-of-pooling-for-mutual-funds-and-how-it-affects-coin/120947 "2021-10-26T07:28:34Z") **Posts on this page:** 1 **Showing post:** 111
### Author: ![Bhuvan](https://tradingqna.com/user_avatar/tradingqna.com/bhuvan/32/843_2.png) [@Bhuvan](https://tradingqna.com/u/Bhuvan) #### Post date: [June 29, 2022, 10:51am UTC](https://tradingqna.com/t/discontinuation-of-pooling-for-mutual-funds-and-how-it-affects-coin/120947/111 "2022-06-29T10:51:32Z")
Extremely sorry for the delay. Although, this seems simple on the outside, this is a wholesale change in how MF transactions work. The reason for the delay in communication is because there were and still are an insane amount of complications from the exchanges, banks and the payment gateways. As we were testing things over the last couple of weeks, we keep discovering serious bugs, and we had to iron them out and hence wanted to be sure before we posted anything. ### What changes? Like we mentioned in this post, funds in your Zerodha trading account [cannot be used](https://www.sebi.gov.in/legal/circulars/mar-2022/discontinuation-of-usage-of-pool-accounts-for-transactions-in-the-units-of-mutual-funds-two-factor-authentication-2fa-for-redemption-and-other-related-requirements-extension-of-timeline_57471.html) to invest in mutual funds starting July 1st, 2022. The funds for all purchases will have to come from your primary bank account linked to your Zerodha account. The redemption proceeds will also be credited to your primary bank account. > [@Discontinuation of pooling for mutual funds and how it affects Coin](https://tradingqna.com/t/discontinuation-of-pooling-for-mutual-funds-and-how-it-affects-coin/120947): > > Up until now, whenever you invested in mutual funds, the funds would be deducted from your trading account just like stocks. On October 4th SEBI issued a circular [that disallows pooling of funds for mutual funds](https://www.sebi.gov.in/legal/circulars/oct-2021/discontinuation-of-usage-of-pool-accounts-for-transactions-in-units-of-mutual-funds-on-the-stock-exchange-platforms_53104.html) from April 1st, 2022. What does this mean for you as an investor? This circular means a complete change in the way Coin works since funds in your trading account can no longer be used to invest in mutual funds. Under the new regime, if you want to buy Mutual funds, you’ll have to make … ### What does this mean for you as a trader? Pledging will work as usual. ### How will Coin work now? The funds for all purchases have to come from the primary bank account linked to your Zerodha account. The proceeds from the redemption will be credited back to the same account. To begin with, payments can only be made from primary accounts, but we’ll soon allow secondary accounts as well. Starting July 1st, you will be able to pay for all mutual fund purchases through UPI, NEFT, RTGS and Net Banking. #### SIPs The day before your SIPs, you will receive an email with a link to a Coin page with all the orders where you can make payments for your SIPs. For now, the payments have to be made individually using UPI or Net Banking, but we are working on making the payment flow seamless. Please bear with us for a month, while things settle down. #### Lumpsum You can pay for lumpsum investments through UPI, NEFT, RTGS and Net Banking. #### Charges There won’t be any charges for the payments. ### Changes in features on Coin - Editing SIPs, pause, modification, and step-up SIPs will continue working as usual. - Orders cannot be deleted once the payment is made. - No changes in the existing frequencies allowed. - Conditional orders won’t be available for a while. ### Cut-off timings - Equity, debt, hybrid and other schemes - 2 PM. - Liquid funds - 12.30 PM. - Funds have to be transferred within the cut-off time. #### Why 2 PM and not 3.30 PM? The cut-off time is decided by the exchanges and the payment gateways. ### Mandates Mandates won’t be available for the first couple of weeks in July, given that there are some issues with scheduling mandates from the exchange and our partner bank. We are working on having them resolved, and you will hopefully be able to create mandates by the last week of July. ### What happens if I miss a SIP payment? SIPs will be active for T+5 calendar days. You can make the payment within 5 days. Cut off timings can vary according to payment mode and banks. Please check this article 👇 > **[How to complete payments for the purchase orders on Coin?](https://support.zerodha.com/category/mutual-funds/payments-and-orders/payment-methods/articles/add-funds-coin-new)** > > How to complete payments for the purchase orders on Coin? --- _[View the full topic](https://tradingqna.com/t/discontinuation-of-pooling-for-mutual-funds-and-how-it-affects-coin/120947)._