Now Investors Can Also Invest in SIPs of Rs. 250: SEBI Proposal

The Securities and Exchange Board of India (SEBI) has proposed a 250 INR SIP (Systematic Investment Plan) to expand the reach of mutual funds among underrepresented groups in India. Although many Asset Management Companies (AMCs) already offer small SIPs, the market regulator believes that introducing smaller SIPs will help the entire industry contribute to financial inclusion.

In a consultation paper released on January 22, SEBI suggested clarifying the cost aspect of smaller SIPs. As per the proposal, AMCs can use the investor education and awareness fund to reach the break-even point for these smaller SIPs. Intermediaries are expected to charge lower fees for these SIPs to make them more accessible to a wider audience.

SEBI has invited suggestions on these proposals, which are open until February 6.