One of the key proposals is to allow employers to invest in mutual fund schemes on behalf of their employees through salary deductions. According to the draft paper, the facility will be available only to listed companies, EPFO registered companies and asset management companies themselves. Employees would have to explicitly opt in to the arrangement, and the investments would continue to be credited in the employee’s own name.
“The proposed scenario acknowledges the established practice of employers offering various benefits and savings avenues to their employees. This mechanism would also allow asset management companies to accept consolidated payments for mutual fund investments through salary deduction,” Sebi said.
Further, the regulator has also suggested allowing fund houses to mutual fund distributors in the form of mutual fund units instead of trail commission. The proposed scenario– allotting mutual fund units instead of trail commission, as agreed between the fund house and the distributor– will provide a convenient, seamless and disciplined way for the distributors to invest in mutual fund units and will encourage them to save and invest for the long term, it added.
Additionally, Sebi has also proposed to permit investors to contribute a portion of the subscription amount or a scheme’s return toward a social cause. This aims to facilitate investor contributions to social causes through a regulated, transparent and investor-protected framework.
To manage PMLA risks in third-party payments, Sebi has suggested safeguards like robust KYC for both the payee and beneficiary, a clear written mandate, and an auditable, non-cash electronic fund trail via segregated accounts with regular reconciliation. Fund houses must perform due diligence and ensure transparency, guaranteeing beneficiaries full redemption liquidity, Sebi suggested.
The Sebi has sought public comments till June 10 on the proposals.