
Fund houses will not accept payments through third party cheques with effect from November 15. This is in pursuant to AMFI (The Association of Mutual Funds in India) best practice guidelines issued in July.
However, the new rule will not be applicable in the following cases: 1) Payment by parents/gand-parents/related persons on behalf of a minor for a value not exceeding Rs 50,000 (each regular purchase or per SIP installment); 2) payment by employer on behalf of employee under systematic investment plans (SIP) through payroll deductions and 3) payment by custodian on behalf of an FII or a client.