BT MPW 2023: 'Sebi looking at viability of smaller SIPs for greater financial inclusion,' says Madhabi Puri Buch

The Securities and Exchange Board of India (Sebi) is evaluating the viability of smaller SIPs -- systematic investment plans -- as part of its attempts to enhance the potential of financial inclusion and, at the same time, make the Indian markets more resilient with a higher share of domestic retail money.

On Friday, while speaking at 20th edition of Business Today's Most Powerful Women event, Sebi chairperson Madhabi Puri Buch said in Mumbai that the regulator is already in discussion with mutual fund houses and is looking at ways to make SIPs of just Rs 250 a month viable.

"Now we are working with them (mutual funds) to see where is that cost, what can Sebi do to facilitate making it possible to bring that viability down to Rs 250 a month," said the Sebi chairperson.

She highlighted the fact that during her discussions with the industry players, she was told that while a Rs 500 a month SIP is viable today, an SIP of just Rs 100 won't be viable and hence they are looking at whether Rs 250 would be a viable option.

Interestingly, Buch believes that lowering the SIP amount could lead to a similar jump that was witnessed when FMCG companies introduced shampoo sachets. 

She further said that this assumes significance as globally money has become expensive and foreign money has moved out of markets amidst global tightening.

"Unlike other emerging markets, our markets were resilient. That was because retail money came in to fill in the gap directly and indirectly," said Buch.

Incidentally, November saw record flows through SIPs with RS 17,073 crore pouring in.