New Delhi: According to a statement made on Thursday by Sebi, the regulator of the capital markets, e-wallets that are used to invest in mutual funds should adhere to the KYC guidelines established by the Reserve Bank of India (RBI).
In its circular, the controller said that the arrangements will be relevant with impact from May 1, 2023.
In a May 8, 2017, circular, the Securities and Exchange Board of India (Sebi) permitted investors, particularly younger investors, to purchase these instruments through either e-wallet or cash per mutual fund per financial year. This was allowed within the umbrella limit of Rs 50,000.
Digital payments were also being promoted in the mutual fund industry and household savings were being channeled into the capital market as part of the move.
A pool of funds gathered from a number of investors make up mutual funds, which are investment vehicles. Stocks, bonds, and money market instruments are among the investments made with the funds.
Sebi stated that the purpose of the circular is to promote the development of the securities market and regulate it, as well as to safeguard the interests of investors in securities.