New Delhi| SEBI (Securities Exchange Board of India) has simplified the rules for investing in mutual funds in the name of children. Now there will be no need to open a bank account in the name of children for investing in mutual funds in their name. In a circular dated May 12, SEBI has now allowed parents and legal guardians to invest in mutual funds through their own account or joint account in the name of their children. The new rules will come into effect from June 15. However, to withdraw money after maturity, a bank account in the name of the child will be mandatory. That is, you will not need an account in the name of the child at the time of investing in mutual funds, but at the time of withdrawal, it will be necessary to have a bank account in his name. It is noteworthy that in December 2019, SEBI had made it mandatory for investment in mutual funds in the name of children or a joint account in the name of children. Now the Mutual Fund Advisory Committee has withdrawn its old order of 2019.
