Now e-wallets Companies Can Sell Mutual Fund Online

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.
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