SEBI bans pooling of MFs by MFs

[nithin]

@anp

Will this new policy disrupt the MF collateral that is currently pledged for F&O margin? In case of a margin call, if the broker has to sell the MF units that are pledged, but, the proceeds hit the bank account and not the broker ledger, what will the broker do?

The broker will have to invoke the pledge, move the security to the broker’s own account and then redeem. The process will definitely get complicated.