Mutual fund orders can be rejected even after completing the payments by the RTA or by BSE StAR MF for certain reasons. You can check the reasons by visiting transaction order history on Coin.
Rejection can be from RTA or BSE StAR MF for the following reasons:
RTA Rejection
- Cumulative PAN Level Amount Crossing Eligible Limit: It means the scheme that you’re trying to invest in is suspended by the AMC due to value and size constraints. However, you can use AMC SIP to invest in such schemes.
- Aadhaar-EKYC Investment Amount Exceeds Rs. 50K: This error is displayed if your E-KYC isn’t completed and you’re investing more than 50k. If the KYC flag as per the CVL KRA website is marked as E-KYC, the maximum investment allowed is ₹50,000 per AMC. In this case, you need to do the rekyc.
- USA and CANADA Investors are not allowed to invest: USA and Canada NRI (NRO) clients are restricted from investing in certain mutual fund schemes, as many AMCs have opted out of accepting investments from US/Canada residents to avoid the heavy compliance burden under FATCA; additionally, if the KYC address on your KRA in Zerodha records shows a USA or Canada address, orders for such schemes can be rejected.
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TPV pending: When an account is opened with Zerodha, a Third Party Verification (TPV) is carried out for the bank accounts. Similarly, when an account is enabled on BSE StAR MF, the exchange does a TPV of the bank account and marks the bank account valid or invalid. In this case, the exchange will validate your bank account and the order will be processed within T+2 working days. If a fund transfer is made using a bank account that is marked invalid, then
you’ll have to create a ticket attaching your bank details.
BSE StAR MF Rejection
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FAILED: ORDER AMT IS LESS THAN MINIMUM SPECIFIED FOR SCHEME:
or MINIMUM AMOUNT CONDITION FAILED:
AMCs revise the minimum investment that is set for a particular scheme. In this case, after you completed the payment, the minimum investment amount got revised and your order was rejected as it was placed for less than the minimum investment amount. You will get a refund within T+5 days and you’ll have to place a fresh order at or above the minimum investment limit. -
PAYMENT NOT INITIATED FROM CLIENT END:
This error is shown even if the payment is successfully made, but the order and payment mapping fail at the exchange level. In such cases, the refund is initiated within T+5 days and you’ll have to place a fresh order -
FAILED: ORDER ENTRY NOT ALLOWED IN THE SCHEME:
When a scheme gets suspended by the RTA/Exchange mid-day, our system takes some time to reflect that update. Until then, any orders placed in that scheme will be rejected. -
FAILED: PASSWORD EXPIRED:
This error is displayed when the payment is successfully made but the order could not be immediately pushed to the exchange. In such cases, the order will be automatically re-pushed to the exchange in the background, and the order status will be updated from Failed to Processing shortly.