As per Live Mint ” A Securities and Exchange Board of India (Sebi) panel on digitization of financial services, headed by Infosys Ltd co-founder Nandan Nilekani, submitted its recommendation on 30 May, two people directly familiar with the development said. The recommendations were then forwarded to Association of Mutual Funds in India, or Amfi, by Sebi for feedback and additional inputs, said the people, adding that the aim is to set things rolling within a month.
“Sebi wants the plan to work right from the beginning. The likelihood of a customer visiting well-known online marketplaces such as Flipkart, Amazon India and Paytm on a daily basis is much higher. The idea is to attract as many potential MF investors as possible from day one without creating too much risk for customers,” said the person. “Allowing all existing players at one go will not only confuse the customers but also increase the risks for customers post investment.”
How it works
You will be required to submit their age, income and location details so that the products offered are suitable and they are not exposed to excessive risks.
After the submission of your personal and income details, you will be able to see a range of MF products that may generally suit your risk profile so that you are enthused to select from the list of schemes.
You might not need to undergo KYC process as the banks through which you will make the payments may have already done the KYC.
However, every MF buyer on the websites may be asked to provide their PAN/Aadhaar after submitting their other details while buying an MF scheme.
However, for making payments through e-wallets or by cash to buy MFs on e-commerce platforms, there may be a total annual investment limit of Rs.50,000.