SEBI clarification regarding Investment in units of Mutual Funds in the name of minor through guardian

SEBI on 12 May, 2023 has issued a clarification regarding Investment in units of Mutual Funds in the name of minor through guardian. It is clarified that Payment for investment by any mode shall be accepted from the bank account of the minor, parent or legal guardian of the minor, or from a joint account of the minor with parent or legal guardian. For existing folios, the AMCs shall insist upon a Change of Pay-out Bank mandate before redemption is processed.