<p>E-wallets used for investing in mutual funds should be compliant with KYC norms prescribed by the Reserve Bank of India (RBI), capital markets regulator Sebi said on Thursday.</p>.<p>In its circular, the regulator said that the provisions will be applicable with effect from May 1, 2023.</p>.<p>The Securities and Exchange Board of India (Sebi) in its circular dated May 8, 2017, allowed the use of e-wallets for investment in mutual funds within the umbrella limit of Rs 50,000 for investments by investors, especially the young generation -- to purchase these instruments through both e-wallet and/or cash per mutual fund per financial year.</p>.<p><strong>Also Read | <a href="https://www.deccanherald.com/national/sc-asks-sebi-to-refund-rs-300-cr-to-nse-1201911.html" target="_blank">SC asks SEBI to refund Rs 300 cr to NSE</a></strong></p>.<p>The move was also part of the efforts to promote digital payments in the mutual fund industry and channelise household savings into the capital market.</p>.<p>Mutual funds are investment vehicles made up of a pool of funds collected from a number of investors. The funds are invested in stocks, bonds and money market instruments, among others.</p>.<p>The circular is issued to protect the interests of investors in securities and to promote the development and regulate the securities market, Sebi said.</p>
<p>E-wallets used for investing in mutual funds should be compliant with KYC norms prescribed by the Reserve Bank of India (RBI), capital markets regulator Sebi said on Thursday.</p>.<p>In its circular, the regulator said that the provisions will be applicable with effect from May 1, 2023.</p>.<p>The Securities and Exchange Board of India (Sebi) in its circular dated May 8, 2017, allowed the use of e-wallets for investment in mutual funds within the umbrella limit of Rs 50,000 for investments by investors, especially the young generation -- to purchase these instruments through both e-wallet and/or cash per mutual fund per financial year.</p>.<p><strong>Also Read | <a href="https://www.deccanherald.com/national/sc-asks-sebi-to-refund-rs-300-cr-to-nse-1201911.html" target="_blank">SC asks SEBI to refund Rs 300 cr to NSE</a></strong></p>.<p>The move was also part of the efforts to promote digital payments in the mutual fund industry and channelise household savings into the capital market.</p>.<p>Mutual funds are investment vehicles made up of a pool of funds collected from a number of investors. The funds are invested in stocks, bonds and money market instruments, among others.</p>.<p>The circular is issued to protect the interests of investors in securities and to promote the development and regulate the securities market, Sebi said.</p>