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Sebi's game-changing rule: Invest in mutual funds for your kids with ease! Payments accepted from minors' accounts. Click now to learn more!

SEBI New Mutual Fund Investment Rules
  • SEBI introduces a transformative change to empower young investors.
  • New mutual fund rules accept payments from various sources.
  • Easier for parents and guardians to invest in mutual funds on behalf of their children.
  • Redemption proceeds credited to the minor's verified bank account.

In a groundbreaking move to empower the next generation of investors, SEBI has recently introduced a transformative change to the mutual fund investment framework for minors. This innovative update to mutual fund regulations now allows payments for minor investments in mutual funds to be accepted from various sources, including the minor's bank account, parent, legal guardian, or even a joint account shared by the child and their guardian. Dive into the details of these new mutual fund rules and discover how they're revolutionising the world of minor investment, making it more accessible and secure for young investors and their guardians.

Given below are the implications of the new SEBI guidelines for mutual funds:

What will be the impact of new mutual fund rules or mutual fund regulations?

The Securities and Exchange Board of India (Sebi) has changed the rules for investing in mutual funds in the name of a minor through a guardian. The new rules will take effect on June 15, 2023.

Under the new rules, payments for mutual fund investments can be made from the minor's bank account, parent, or legal guardian, or from a joint account of the minor with the parent or legal guardian. This change makes it easier for parents and guardians to invest in mutual funds on behalf of their children.

Sebi has asked all Asset Management Companies (AMCs) to make the necessary changes to their systems and processes to comply with the new rules.

How will new mutual fund rules impact parents/ guardians who wish to invest in mutual funds on behalf of their children?

The new rules are expected to encourage more parents and guardians to invest in mutual funds for their children. This is a positive development, as mutual funds offer several benefits, such as diversification, professional management, and the potential for long-term growth. In addition, by investing in mutual funds, parents and guardians can help their children build a solid financial foundation for their future.

Read article: SEBI relaxes overseas share transfer norms

How are new mutual fund regulations going to impact existing mutual fund folios?

Before processing redemptions, Asset Management Companies (AMCs) will require a change of pay-out bank mandate for existing mutual fund folios.

Are there any SEBI guidelines concerning the redemption of proceeds (about the account of a minor)?

The Securities and Exchange Board of India (Sebi) has said that all redemption proceeds from mutual funds invested in the name of a minor will be credited to the minor's verified bank account, which can be held jointly with the parent or legal guardian. This is regardless of the source of payment for the subscription.

Read article: Boost for Investors: SEBI Eases NAV Disclosure Rules

SEBI's new guidelines empower parents and guardians to easily invest in mutual funds for their children, offering flexibility in payment sources and securing their financial future.

 

 

 

  • SEBI introduces a transformative change to empower young investors.
  • New mutual fund rules accept payments from various sources.
  • Easier for parents and guardians to invest in mutual funds on behalf of their children.
  • Redemption proceeds credited to the minor's verified bank account.

In a groundbreaking move to empower the next generation of investors, SEBI has recently introduced a transformative change to the mutual fund investment framework for minors. This innovative update to mutual fund regulations now allows payments for minor investments in mutual funds to be accepted from various sources, including the minor's bank account, parent, legal guardian, or even a joint account shared by the child and their guardian. Dive into the details of these new mutual fund rules and discover how they're revolutionising the world of minor investment, making it more accessible and secure for young investors and their guardians.

Given below are the implications of the new SEBI guidelines for mutual funds:

What will be the impact of new mutual fund rules or mutual fund regulations?

The Securities and Exchange Board of India (Sebi) has changed the rules for investing in mutual funds in the name of a minor through a guardian. The new rules will take effect on June 15, 2023.

Under the new rules, payments for mutual fund investments can be made from the minor's bank account, parent, or legal guardian, or from a joint account of the minor with the parent or legal guardian. This change makes it easier for parents and guardians to invest in mutual funds on behalf of their children.

Sebi has asked all Asset Management Companies (AMCs) to make the necessary changes to their systems and processes to comply with the new rules.

How will new mutual fund rules impact parents/ guardians who wish to invest in mutual funds on behalf of their children?

The new rules are expected to encourage more parents and guardians to invest in mutual funds for their children. This is a positive development, as mutual funds offer several benefits, such as diversification, professional management, and the potential for long-term growth. In addition, by investing in mutual funds, parents and guardians can help their children build a solid financial foundation for their future.

Read article: SEBI relaxes overseas share transfer norms

How are new mutual fund regulations going to impact existing mutual fund folios?

Before processing redemptions, Asset Management Companies (AMCs) will require a change of pay-out bank mandate for existing mutual fund folios.

Are there any SEBI guidelines concerning the redemption of proceeds (about the account of a minor)?

The Securities and Exchange Board of India (Sebi) has said that all redemption proceeds from mutual funds invested in the name of a minor will be credited to the minor's verified bank account, which can be held jointly with the parent or legal guardian. This is regardless of the source of payment for the subscription.

Read article: Boost for Investors: SEBI Eases NAV Disclosure Rules

SEBI's new guidelines empower parents and guardians to easily invest in mutual funds for their children, offering flexibility in payment sources and securing their financial future.