New Delhi : Markets regulator Sebi is looking to allow investors to buy mutual funds worth up to Rs 50,000 through digital wallets to make it easier for investors to purchase these instruments, especially by young generation.
The move would help in speedy and easy transactions, while reducing failures due to payment gateway issues. Besides, the Securities and Exchange Board of India (Sebi) is expected to put in place regulations for instant withdrawal facility in liquid mutual fund. Also, asset management companies (AMCs) can tie-up with payment banks to provide digital transaction to investors.
The board of Sebi will discuss proposals in this regard next week, sources said. These new facilities will help in increasing the penetration of mutual funds and help in channelising household savings into capital markets.
It would also provide convenient option to investors to diversify from traditional saving avenue. Under the proposal, total subscription through e-wallet for an investor should be restricted up to Rs 50,000 per mutual fund in a financial year.
The regulator may ask AMCs to enter into an agreement with payment pre-paid payment instruments for facilitating payment from e-wallets of the investors to mutual fund schemes. AMCs will have to ensure that e-wallet issuers must not offer incentive such as cash back directly or indirectly for investing in MFs through them.