SEBI to allow investments in mutual funds shortly via digital wallets

INDORE, India - Dec. 10, 2016 - PRLog -- The capital markets regulatory body the SEBI (Securities & Exchange Board of India),  may soon facilitate investors to buy mutual funds valued  as much as Rs. 50,000 a month through digital wallets, with a view to keep with the government's move to advance  and increase digital transactions. The move helps in quick and easy transactions, reducing failures due to payment gateway issues, the sources said.
Mutual fund schemes will be the sole products in which transactions up to Rs. 50,000 will be permitted through e-wallets. For all the other products, the prevailing limit of Rs. 10,000 a month will remain.  Companies like  Paytm, Citrus Payment Solutions and Mobikwik offer digital e-wallet service.
As per the proposal, investments up to Rs. 50,000 in mutual funds is not required to go through an additional KYC process to establish the identity of the buyer, the sourced added.
Currently, 43 active Asset Management Companies together manage assets worth an estimated Rs. 16.8 lakh crores and mutual fund investors account is over 5.00 crores.
Maximum amount of money a user can store, monthly, on his digital wallets stands at Rs 20,000, whereas  the earlier limit for users was Rs. 10,000. On November month, the RBI doubled the limit in view of  cash crisis on account of  the demonetization of high-value notes.
SEBI considers,  a greater use of Internet  as a distribution platform can help increase the access of mutual funds, particularly among the young investors, and also reduce the cost of buying mutual fund schemes.  Accessing e-wallet transactions would positively be a welcome step on SEBI, and it is hoped to boost the speed and ease of trans actions through online channel.

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