SEBI may let employees invest in SIPs through salary deductions

SEBI may let employees invest in SIPs through salary deductions

SEBI has proposed allowing employers to deduct SIP amounts from employees' salaries and invest them directly in mutual funds, subject to explicit employee consent and KYC checks; public comments are open until June 10, 2026. Payroll-linked SIPs reduce discontinuation rates caused by missed mandates or market volatility, making them a lower-friction onboarding tool for first-time retail investors — a model already proven in 401(k)-style pension systems.