The move will enable speedy and easy transactions, while reducing failures due to payment gateway issues, reported The Times Of India.
In addition to this, SEBI is expected to set up the regulations for instant withdrawal facility in liquid mutual fund. Also, Asset Management Companies (AMCs) can tie-up with payment banks to provide digital transaction to investors.
These new facilities will help in increasing the reach of mutual funds and help in channelising household savings into capital markets. It would also provide a convenient option to investors to diversify from traditional saving avenue.
Under the proposal, total subscription through e-wallet for an investor would be restricted up to Rs 50,000 per mutual fund in a financial year.
The regulator may ask AMCs to enter into an agreement with payment pre-paid payment instruments for facilitating payment from e-wallets of the investors to mutual fund schemes.
AMCs will have to ensure that e-wallet issuers must not offer incentive such as cash back directly or indirectly for investing in MFs through them.
Further, e-wallet’s balance loaded through cash, debit card and net banking, can only be used for subscriptions to mutual funds. However, balance loaded with credit card, cash back and promotional scheme should not be allowed for the purchase of such products.
SEBI may come out with a framework for instant access facility in liquid schemes, wherein investors can withdraw their funds invested in the scheme within a very short time through an online mechanism.