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SEBI Proposes Gift PPIs to Boost MF Investments
24 Mar
Summary
- Gift cards can now be used to invest in mutual fund units.
- These gift PPIs will be funded via electronic bank transfer or UPI.
- Investments via gift PPIs are capped at Rs 50,000 per investor annually.
The Securities and Exchange Board of India (SEBI) has put forth a proposal to introduce gift prepaid payment instruments (PPIs), commonly known as gift cards, for mutual fund investments. This initiative aims to enhance financial inclusion by facilitating the onboarding of new investors into the mutual fund space.
Under the proposed system, individuals can purchase a gift PPI and gift it to someone else. The recipient can then utilize this instrument to purchase units in mutual funds. Funding for these PPIs will exclusively be through electronic bank transfers or UPI from Indian bank accounts, and they will have a validity of one year from their issuance date.
SEBI has suggested a limit of Rs 50,000 per investor per financial year for any investments made using these gift PPIs. The proposal stems from a recommendation by the Association of Mutual Funds in India (AMFI). SEBI is currently seeking public feedback on these proposals, with comments due by April 14th.
