SEBI mulls allowing gift cards for mutual fund investments
Securities and Exchange Board of India, or SEBI, is planning to let people gift prepaid cards that can be used to invest in mutual funds, kind of like giving someone a head start on their financial journey.
The move aims to make investing feel more accessible, especially for first-timers and younger folks, and follows the Reserve Bank of India's rules for safe transactions.
Things to know about the new system
Each card can hold up to ₹10,000 and has to be used within a year.
You can't reload them or turn them into cash, but if needed, the money can go back to the original account with your OK.
There's an annual cap of ₹50,000 per mutual fund per financial year on total subscriptions made via e-wallets, Gift PPIs and cash.
The whole system is designed with security and compliance in mind, hoping to nudge more people toward smart investing instead of just traditional gifts.