Rs 250 SIP: Sebi mentions small-ticket SIPs in consultation paper, invites comments till February 6
Capital market regulator SEBI has issued a consultation paper containing a host of proposals aimed at boosting small-ticket investments. It has invited feedback from stakeholders till February 6.
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Taking the possible first step towards launching a Rs 250 SIP, capital market regulator Securities and Exchange Board of India (SEBI) on Wednesday mentioned small ticket SIPs in a consultation paper aimed at promoting financial inclusion through the sachetisation of investment in mutual fund schemes.
Here are some of the salient features of the small ticket SIPs, as proposed by SEBI in the paper:
- The small ticket SIP may be restricted to three types, one each in a maximum of 3 asset management companies (AMCs).
- AMCs can continue to offer Rs 250/-SIPs beyond three small ticket SIPs. However, intermediaries' discount offers will be restricted to only the first three Rs 250 SIPs.
- Such SIPs may be offered under growth plans.
- Such SIPs may be restricted to the 'auto pay' options under the National Automated Clearing House (NACH) and the Unified Payment Interface (UPI).
- Such SIPs may be set up in the statement of account (SOA) or demat modes of investment.
- Costs related to KYC formalities may be compensated from the fund collected by AMCs by charging 1 bps to mutual fund schemes for investor education and awareness.
Additionally, Sebi mentioned a proposed incentive of Rs 500 for distributors or execution-only platforms (EOPs) for small ticket SIPs, over and above the distribution commission payable by AMCs to distributors.
The market regulator hoped that AMCs would reach break-even by the financial inclusion facilitated under the proposed scheme within two years.
The regulator invited feedback from stakeholders till February 6.
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