Rs 250 SIP: Sebi talks about small ticket SIPs in consultation paper, invites comments till February 6.
Taking a possible first step towards the introduction of Rs 250 SIP, capital markets regulator Securities and Exchange Board of India (SEBI) on Wednesday mentioned small ticket SIPs in a consultation paper aimed at promoting financial inclusion through liquidation of investments in mutual fund schemes.
Here are some key features of small ticket SIPs, as proposed by SEBI in the paper:
- A small ticket SIP may be limited to three types, one each for 3 asset management companies (AMCs).
- AMCs can continue to offer Rs 250/-SIPs in addition to three small ticket SIPs. However, the intermediary discount offer will be limited to the first three SIPs of Rs 250 only.
- Such SIPs may be given under growth schemes.
- Such SIPs may be limited to ‘automatic payment’ options under National Automated Clearing House (NACH) and Unified Payment Interface (UPI).
- Such SIPs may be set up in the statement of account (SOA) or investment closing procedures.
- Costs related to KYC procedures can be offset from the fund collected by AMCs by charging 1 bps on mutual fund schemes for investor education and awareness.
Additionally, Sebi has mentioned a proposed incentive of Rs 500 for distributors or exclusive execution platforms (EOPs) for small ticket SIPs, in addition to the distribution commission paid by AMCs to distributors.
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The market regulator had hoped that the AMCs would achieve diversification through the capital infusion encouraged under the proposed scheme within two years.
The administrator invited reports from participants until February 6.
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