Overview
- SEBI issued a draft consultation paper on Wednesday proposing that employers, select firms and AMCs be allowed to make consolidated mutual fund payments for employees through salary deductions on an opt‑in basis.
- The draft limits eligible payers to listed companies, EPFO‑registered firms and AMCs and says investments would remain in the employee’s name with participation voluntary.
- Regulator also floated allowing AMCs to pay distributor commissions in mutual fund units instead of cash and asked for views on safeguards to prevent conflicts of interest and possible mis‑selling.
- Proposed compliance measures include validated payer‑beneficiary links, enhanced KYC checks, PMLA compliance, auditable electronic trails and a rule that redemption or dividend proceeds go only to the investor’s verified bank account.
- Public comments are open until June 10, 2026, and SEBI says the paper follows requests from the mutual fund industry and recommendations by its Mutual Fund Advisory Committee, with final rules to follow after the consultation.