No PAN for SIP of Rs 50k


Mumbai: Concerned over the falling growth in the mutual fund industry, the
government on Wednesday 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
said 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 panindia penetration of
MF products. AMFI had asked Sebi to re-consider the decision of having a PAN
card compulsorily for investments in MFs arguing that it may discourage many
investors from opting MFschemes. PTI

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