SEBI Seeks Feedback on Proposal for Rs 250 Small Ticket SIP Plans

The capital market regulator, Sebi, has invited public feedback on its "Small Ticket Systematic Investment Plan," commonly referred to as the Rs 250 SIP, through a consultation paper released on January 22.

Sebi is suggesting that the Rs 250 SIP be limited to just three plans, with one plan each from up to three Asset Management Companies.

Participants in the mutual fund industry have agreed to provide "discounted rates" to help Asset Management Companies (AMCs) reach break-even more quickly on the costs associated with these investments. While AMCs can offer more than three small ticket SIPs, the discounted rates from intermediaries will only apply to the first three plans.

The regulator has suggested that a portion of the costs incurred by AMCs, along with certain incentives, could be reimbursed from the Investor Education and Awareness Fund. This move is intended to reduce the break-even time and help reach more investors. The proposed "sachetisation" of mutual funds aims to encourage financial inclusion, promote regular saving habits, and make it easier for new investors to start investing small amounts in mutual funds.