Good Time for e-Wallets companies like PayTm, Mobikwik, Freecharge etc. They are allowed by SEBI to sell mutual funds upto Rs 50,000/-. This is another boost for e-Wallet companies after demonetization. Recent announcement by Security and Exchange board of India (SEBI) for permitting subscription to mutual fund (MF) schemes through e-wallets surely give another lifeline to these companies. This will help surging in Fintech companies.
SEBI circular stated that “With an objective to promote digitization, MFs/AMCs (mutual funds/asset management companies) can accept investment by an investor through e-wallets (prepaid payment instruments (PPIs)). As per guidelines, investors can invest up to Rs 50,000 per MF per financial year through e-wallets.
Read : How To Link Mutual Fund eKYC with Aadhaar ?
SEBI also warned Fintech e wallets that Only amounts loaded into e-wallet through cash or debit card or net banking, can be used for subscription to MF schemes following the existing KYC/AML guidelines. They will not be allowed for providing any offers or any incentives such as cashback, vouchers, etc., directly or indirectly for investing in MF schemes.
Read : Why ELSS Is A Better Tax Saving Option Than Others ?
Important Guidelines for Purchasing Mutual Fund Through e-Wallets
- Maximum amount of investment through any of the e-Wallet is Rs 50,000 per mutual fund, per year
- Credit Card payment to e_wallet for purchasing the Mutual fund not allowed. e-Wallet companies has to ensure that money added through debit cards, net banking and cash used to buy mutual funds
- No offers or any incentives such as cashback, vouchers, etc., directly or indirectly for investing in MF schemes.
- Online instant Buying and selling window will be provided to users for buying and selling.
- Asset management companies (AMCs) needs intimate the SEBI after finalizing the guidelines specific to investment through e-Wallets. No buy back and liquidity position.
