Sebi Makes UCC Mandatory For MFs

Mumbai, Jan 28: | Updated: Jan 29 2004, 05:30am hrs
The capital market regulator Securities and Exchange Board of India (Sebi) has made the use of unique client code (UCC) mandatory for certain intermediaries including mutual funds (MFs). These intermediaries will be permitted to operate in the securities market only upon quoting the UCC with effect from a date to be announced separately by the regulator.

This is in furtherance to its earlier stipulation that the stock exchanges would be required to phase out the usage of the UCC to the market participants. In a communication to all the MFs and its trade body, Association of Mutual Funds In India (Amfi), on Wednesday, Sebi explained that whenever a new scheme or a plan under a scheme is launched, the concerned MF will have to obtain the UCC from the concerned exchange before commencing the trading on behalf of the scheme or the plan.

It is of utmost importance that the secrecy of the UCC is maintained by the mutual funds and the same should be furnished only to the member broker through whom the mutual funds are trading, the Sebi further said.