SEBI Chairperson Madhabi Puri Buch said India might soon see the introduction of a ₹250 per month systematic investment plan (SIP), a move aimed at making financial inclusion more accessible to a broader segment of the population.
Speaking at a CII event, Buch said an initiative is being worked on in collaboration with the mutual fund industry.
According to Buch, the idea of a ₹250 SIP is not just about offering a low-cost investment option but also about leveraging technology to make the process of onboarding and servicing more efficient.
She explained that the industry has been in discussions with the Association of Mutual Funds in India (AMFI) and key players in the sector to ensure the viability of this initiative. “We have been working very closely to make sure that’s viable for them. It can be offered, but if it’s not viable, it will not get the traction,” Buch said.
Aditya Birla Sun Life Mutual Fund has reportedly taken the lead in developing this ₹250 SIP, which, if successful, would be the first of its kind by any mutual fund house in India. BT could not independently verify whether the fund house is actively working on this project.
Buch believes that enabling people to invest with as little as ₹250 per month, roughly equivalent to $3, will allow a larger section of the population to partake in the wealth creation process. “People are shocked globally when I say roughly $3 a month. Imagine, with less than $3 a month, people will be able to participate in the wealth creation of our nation, and that is our path towards a ‘Viksit Bharat’,” Buch remarked.
The SEBI chairperson also touched upon the future of the market ecosystem, emphasizing that the next phase will be characterized by larger scale and increased complexity. To manage this effectively, Buch pointed out that the deployment of technology will be crucial. “A large part of our market ecosystem is now pioneering and leading in terms of technology globally. There is no other place on this globe where a lot of the technology that we have today is present anywhere else,” she noted.
As the mutual fund industry gears up for this potential shift, Buch stressed the importance of co-creation and collaboration between the regulator and industry stakeholders. She pointed out that the complexity of the market ecosystem necessitates a more nuanced approach to regulation, one that involves consultation and partnership. “There is no other way of doing the regulator business, other than to co-create. So this is out of sheer necessity,” she added.