Sebi to Sachetise MF's

Issuing shares to more than 50 people is considered a public issue and requires SEBI clearance

- Neha Joshi

The Securities and Exchange Board of India (Sebi) has unveiled a proposal for promoting financial inclusion through the "sachetisation" of mutual fund (MF) investments. Sachetisation refers to the process of offering financial products and services in smaller, more affordable packages, making them easier to access and manage.

The initiative proposes offering small-ticket investments, starting at just ₹250, to encourage low-income groups to begin their investment in MFs.

The consultation paper outlines a plan to make mutual funds more accessible to underserved sections of society, especially those who have limited means to invest. By introducing small, periodic investments through a Systematic Investment Plan (SIP), Sebi hopes to foster a culture of systematic savings and provide a sustainable route for individuals new to investing.

"This can assist in financial empowerment of the underserved section of the economy and nudge fund houses to expand their footprints to even remote locations in the country," the paper said.