New Delhi, May 20 -- The Securities and Exchange Board of India (SEBI) has in a draft consultation paper uploaded to its official website today proposed to enable third-party payments in mutual funds under certain scenarios.

The rules at present, mandate that the primary investor make all payments towards a mutual fund directly from their own bank account(s), or online via Reserve Bank of India (RBI) approved payment aggregators, or through SEBI-recognised clearing corporations.

The new draft proposes that investment by an employer on behalf of its employees and payment of commissions by asset management companies (AMCs) be allowed, with installment of adequate safeguards. It has sought public comments on the paper till 10 June.

The dr...