Sebi opens doors for MF investment platforms to charge transaction fee

They can charge some money but commission won't be allowed: Chairman Madhavi Puri Buch

Online mutual fund (MF) investment platforms like Groww, Zerodha Coin and Paytm Money, which allow investments in direct MF schemes for free, will soon be able to charge their customers or the fund houses for executing transactions.

"They can charge some money but commission-like structure won't be allowed," Madhavi Puri Buch, chairperson of the Securities and Exchange Board of India (Sebi), said on Tuesday.

At present, none of these online investment platforms generate any revenue through the MF sales.

On Tuesday, Sebi announced the introduction of a regulatory framework, specifically for such investment platforms. The regulator said the framework will