AMFI gets govt nod to exempt PAN for SIPs up to Rs 50,000

Mumbai, Jun 17: Concerned over the falling growth in the mutual fund industry, the government today gave in-principle nod to allow up to Rs 50,000 investments under SIP without quoting PAN card number.
The Association of Mutual Funds in India (AMFI) has received permission from the Government to exempt PAN card requirement for such investments and the notification in this regard is expected soon, AMFI Chairman A P Kurian told PTI on the sidelines of a mutual fund seminar here.

"It is a good thing (making PAN card not mandatory for SIP investments up to Rs 50,000) and it will help the industry to grow," Kurian said.

In 2007, market regulator Securities and Exchange Board of India (SEBI) had made it compulsory for all resident and non-resident Indians to submit a copy of their PAN cards while investing in securities.

Mandatory submission of PAN had caused hardships for many small investors to invest in mutual fund schemes, thus impacting the pan-India penetration of MF products.

Earlier, AMFI had asked SEBI to re-consider the decision of having a PAN card compulsorily for investments in mutual funds arguing that it may discourage many investors from opting MF schemes.

An SIP (systematic investment plan) is a vehicle offered by mutual funds to help investors save regularly. PTI