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.
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.
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.