SEBI Gift PPI Proposal: Gifting Mutual Fund Investments
Why in the news
SEBI released a consultation paper in March 2026 suggesting that people be allowed to gift mutual fund investing power through prepaid instruments.
What is proposed
A Gift PPI would be bought by one person and handed to another, who could use it only to buy mutual fund units.
| Feature | Proposal |
|---|---|
| Regulator | SEBI |
| Use | Mutual fund investments only |
| Funding | Bank transfer or UPI (Indian accounts only) |
| Validity | 1 year from issue |
| Cap | ₹50,000 per investor per financial year |
| Condition | Recipient KYC compliance |
Significance
- Promotes financial inclusion.
- Encourages first-time investors.
- Makes investing a social, accessible activity.
- Helps deepen capital markets.
Exam angle
- Proposed by SEBI, not RBI.
- Cap: ₹50,000 a year; validity: 1 year.
- Relevant for RBI Grade B, SEBI Grade A and banking papers.