**Mutual Fund Investors**: Specifically those holding units across demat and non-demat (Statement of Account) folios. To eligible, investors must be KYC complied (Registered / Validated) and have both a valid Email ID and a valid Mobile number registered. **Mutual Fund Entities**: All Mutual Funds (MFs), Asset Management Companies (AMCs), Trustee Companies, Registrar and Transfer Agents (RTAs), and the Association of Mutual Funds in India (AMFI).

**Voluntary Debit Freeze**: Investors can voluntarily lock their folios to ensure no units are debited until they choose to unlock them. **First Phase Platform**: The facility to lock folios will be provided to investors by RTAs through the MF Central platform (an inter-operable RTA platform). **Process Standardization**: AMFI, after due consultation with SEBI, will prescribe the detailed process for locking and unlocking folios to all AMCs and RTAs, including processes for different types of investors. **Transaction Rules**: AMFI will prescribe a detailed list of financial and non-financial transactions that are permitted during the lock-in period. **Mandatory Disclosures**: All AMCs and RTAs must disclose the detailed opt-in process and the impact on financial and non-financial transactions during the lock-in period on their websites and in their Statement of Additional Information (SAI).

What is SEBI's Voluntary Lock-in for Mutual Funds?

Quick summary

SEBI has introduced a voluntary lock-in or debit freeze facility for mutual fund investors across demat and non-demat folios. This digital security measure ensures no units are debited from locked folios until they are unlocked. The facility launches through the MF Central platform on April 30, 2026, for eligible KYC-compliant investors.

Who is affected

Mutual Fund Investors: Specifically those holding units across demat and non-demat (Statement of Account) folios. To eligible, investors must be KYC complied (Registered / Validated) and have both a valid Email ID and a valid Mobile number registered.
Mutual Fund Entities: All Mutual Funds (MFs), Asset Management Companies (AMCs), Trustee Companies, Registrar and Transfer Agents (RTAs), and the Association of Mutual Funds in India (AMFI).

What changes

Voluntary Debit Freeze: Investors can voluntarily lock their folios to ensure no units are debited until they choose to unlock them.
First Phase Platform: The facility to lock folios will be provided to investors by RTAs through the MF Central platform (an inter-operable RTA platform).
Process Standardization: AMFI, after due consultation with SEBI, will prescribe the detailed process for locking and unlocking folios to all AMCs and RTAs, including processes for different types of investors.
Transaction Rules: AMFI will prescribe a detailed list of financial and non-financial transactions that are permitted during the lock-in period.
Mandatory Disclosures: All AMCs and RTAs must disclose the detailed opt-in process and the impact on financial and non-financial transactions during the lock-in period on their websites and in their Statement of Additional Information (SAI).

Action items

For Investors: Ensure your mutual fund folios are KYC complied (Registered / Validated) and updated with a valid Email ID and Mobile number to use this facility when it launches.
For AMFI: Consult with SEBI to prescribe the detailed locking/unlocking processes and the list of allowed financial and non-financial transactions to AMCs and RTAs.
For AMCs and RTAs: Publish the detailed opt-in process and transaction impacts on websites and in the Statement of Additional Information (SAI).

Key dates-deadlines

April 30, 2026: The date from which this circular comes into effect.

Source reference

SEBI Circular Reference: HO/24/12/12(5)2026-IMD-SEC-1/I/6373/2026
Date of Issue: March 06, 2026
Source Location: Available at www.sebi.gov.in under the link “Legal ->Circulars”