Markets regulator SEBI has proposed allowing gift cards to be used for investing in mutual funds. So, instead of buying clothes or gadgets, the recipient uses it to buy mutual fund units.
SEBI’s case for this: it widens financial inclusion by pulling in first-time investors who may not have taken the step on their own.
The proposal is currently in consultation. SEBI has released a paper and is inviting feedback before any rule is finalised.
What's in it for you?
Gift investment: You can now gift someone an investment, and it’s as easy as buying a gift card online. Bear in mind, the maximum value of each gift card would be Rs 10,000.
Recommend a scheme: You can even select a scheme for the gift card, but, of course, the choice will be with the redeemer.
KYC needed: The gift card can be funded only through electronic bank transfer or UPI. The rules propose that KYC details of the purchaser will be needed.
Expiry date: The gift card will have a validity of one year from the date of issuance. Post that, it will be refunded to the purchase.
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