SEBI New Rule If you also invest in Mutual Funds for the good future of children, then SEBI has changed the related rules. A circular has also been issued regarding this. (Jagran file photo)
A new rule has been issued by the market regulator SEBI regarding Mutual Fund Scheme. After this parents or guardians will now easily be able to invest in mutual fund schemes from their bank accounts in the name of their children. For this, there will be no need to open a joint account or minor children account. A circular has been issued by the market regulator SEBI regarding this.
This change by SEBI will bring great relief to those who invest in mutual fund schemes for their children’s future.
In the circular (SEBI/HO/IMD/DF3/CIR/P/2019/166) issued by the Securities and Exchange Board of India (SEBI/HO/IMD/DF3/CIR/P/2019/166) of the parent to be followed by the asset management companies. The rules of investment in the name of minors have been amended.
What is the new rule?
The circular states that investments in mutual fund schemes in the name of minors can be made through minors, parents, guardians, and joint bank accounts. Also, the market regulator has told that the money should be credited to the verified bank account of the minor on the withdrawal of the money invested in the mutual fund scheme in the name of the minor. However, no other rule changes have been made by SEBI.
When will the new rules apply?
The new rule is going to come into effect from June 15, 2023. SEBI has advised all AMCs to make necessary changes to facilitate transactions in mutual funds as per the new rules.
