SEBI Introduces Voluntary Lock-in / Debit Freeze Facility to Mutual Fund Folios

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Apr 28, 2026

SEBI Introduces Voluntary Lock-in / Debit Freeze Facility to Mutual Fund Folios

SEBI, by way of a Circular dated March 6, 2026, on ‘Introduction of voluntary lock-in/debit freeze facility to mutual fund folios’, has introduced a voluntary debit freeze facility for mutual fund investors (both demat and non-demat folios) to prevent units from being debited until unlocked by the investors. The facility will be available through the MF Central platform for KYC-compliant investors only, with the operational guidelines to be notified by the Association of Mutual Funds in India (‘AMFI’) for implementation of the same by the respective asset management companies and the registrar and transfer agents. The provisions of the circular will come into effect on April 30, 2026.

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