Sebi's New Combo Product: Merging Mutual Funds with Life Insurance

Sebi is introducing a combo product combining mutual fund investments with life insurance to expand financial access, particularly in underserved rural areas. This initiative aims to provide affordable financial products and enhance investor trust by focusing on technology's role in ensuring security and reliability.

The Securities and Exchange Board of India (Sebi) is gearing up to launch an innovative combo product fusing mutual fund investments with life insurance, Chairperson Madhabi Puri Buch announced. This initiative targets expanding financial inclusion, especially in underserved rural regions, offering an attractive, affordable option to investors.

This new product reflects Sebi's commitment to tailoring financial tools to better meet market needs. By coupling investments with insurance, the regulator seeks to unlock the potential of systematic investment plans in areas where current investment values are low, thus broadening financial access across the population.

Additionally, Sebi is set to release consultation papers on using technology to enhance transaction security, such as the 'Pay Right' initiative. This aims to bolster investor confidence against digital fraud by enabling UPI ID authentication through rigorous KYC processes, marrying technology with trust to protect investors.

(With inputs from agencies.)