Sebi proposes small-ticket SIP of Rs 250. 6 key things to know

Market regulator Securities and Exchange Board of India (Sebi) on Wednesday proposed a small-ticket SIP with a minimum investment amount of Rs 250 per month. However, the small ticket SIP that an investor can start, will be restricted to three SIPs.

Small-ticket SIPs shall be offered in any schemes except for debt schemes, sectoral and thematic, small-cap and mid-cap schemes under equity scheme category. It shall be offered only under the growth option of the plan.

Considering the higher cost of investment through alternate modes, the mode of payment/investment for small-ticket SIP may be restricted to the National Automated Clearing House (NACH) and Unified Payment Interface (UPI) auto pay mode only.

Investment of up to Rs 50,000 per investor, per mutual fund, per financial year is permitted without PAN. Therefore, PAN-exempted KYC Registration Number (PEKRN) based KYC will be available for small ticket SIP.

Small-ticket SIP is primarily envisaged for monthly SIPs. The option of fortnightly small-ticket SIPs may also be enabled, as the same will reduce the transaction cost due to fixed quarterly UPI charges and thus will further reduce the breakeven time for AMCs.

Commitment by an investor under a small-ticket SIP scheme should be for 5 years i.e. 60 investments. However, if an investor desires to stop SIP or withdraw the SIP investment prematurely, there should be no restriction on it.

All statutory disclosures to unitholders shall be through a registered mobile number and email id (if provided by the investor). If disclosure is made to investors through a link on mobile number and/or email id, the link should remain active at all times and investors should be able to download the disclosures made thereunder.