MUTUAL FUNDS to accept up to Rs 50,000 cash for Investment

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SEBI has allowed mutual funds to accept investments up to `50,000 in cash from under-banked regions. Investors can put up to `50,000 per mutual fund in a financial year. The earlier limit was `20,000. However, repayment in the form of redemptions and dividend with respect to investments from these regions shall continue to be only through the banking channel, the market regulator said. However, the new limit is subject to compliance with the Prevention of Money Laundering Act, 2002. In September 2012, SEBI had allowed investors to invest up to `20,000 in cash per fund house in a financial year, to help mutual fund houses enhance their reach and attract fresh investors.

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