Sebi proposes allowing salary payments in mutual funds. India's securities regulator has issued a consultation paper suggesting employers at listed and EPFO-registered companies could pay portions of employee salaries directly into mutual fund investments. The framework would remain entirely voluntary for workers. Sebi also proposes allowing mutual fund distributors to receive commissions partly in MF units rather than cash, potentially encouraging long-term investing among distribution professionals. The regulator has outlined safeguards including enhanced KYC checks, relationship validation, and audit trails to prevent misuse and ensure compliance with anti-money-laundering norms. Currently, MF investments must come directly from personal bank accounts.
