Sebi proposes Gift PPIs for mutual fund investments.

Sebi proposes Gift PPIs for mutual fund investments. The Securities and Exchange Board of India has introduced a new framework allowing people to gift prepaid cards worth up to ten thousand rupees that can only be redeemed for mutual fund investments. This initiative aims to encourage first-time investors by simplifying market entry. Gift givers can suggest a specific mutual fund scheme, though recipients retain full freedom to choose their own investment. The cards function similarly to shopping gift vouchers but exclusively for mutual fund purchases. Each card has a one-year validity period, and unspent amounts are automatically refunded. Investments made through these cards are processed under direct plans with lower expense ratios, benefiting cost-conscious investors. This regulatory move represents an effort to democratize investment access across India's financial markets.