On Wednesday, the market regulator Sebi has announced that the investor can purchase the mutual funds worth Rs 50,000 or more through e-wallet payments. In its general board meeting Sebi has also approved the mutual funds to provide immediate online access the facility to the investors in liquid schemes for up to Rs 50,000 or 90% of the value sheet which ever is lower.
Sebi also allowed to trade in options contracts on goods, allowed large and systemically important NBFC’s to buy shares of institutional placement (QIBs) and allowed the renewal of the debt securities of corporate deepen the bond market.
Regulatory Approvals for Electronic MFC Investments, aimed at saving money on the home market and promoting digital payments in the economy, Sebi said. The redemption of such an investment must be in the bank account of the investor.
In an press release, Sebi said “Under the new rules, e-wallet issuers can not provide incentives to users, such as direct or indirect refunds for investment in mutual funds. Electronic wallets can not accept credit cards, rebates, and promotional plans in mutual funds.”
For ease of instant online access for MF investors, the fund house can not borrow funds and such reimbursements have to be satisfied with available funds in the scheme. “This facility can also be used to invest in mutual funds through drawdowns with payment banks as long as the necessary RBI approvals are obtained,” the statement added.
At present, electronic wallet and other e-payment instruments can only support up to 20,000 Rs per user with minimum KYC.
Sebi’s new rules for trading in commodity options aimed to deepen this market and improve liquidity in the commodities market. Ajay Tyagi, Chairman of Sebi stated “This was an important step towards deepening the market for commodity derivatives”. Soon the regulatory will issue detailed guidelines for trading on these financial products.
The regulator will provide a full-fledged license to brokers and clearing members to conduct smooth trading on derivatives and commodities. This approach will reduce the current practice of financial institutions to set up a separate Provident Fund for Equity and Commodity Futures Trading.
Sebi also permits the incorporation and issuance of new corporate securities, including the reduction of the ISIN (International Securities Identification Numbers), a unique identifier for all types of securities being traded.