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nism-series-va-minor-investment-guardian-bank-account[ MUTUAL FUND DISTRIBUTORS ]

Under revised SEBI guidelines for mutual fund investments made in the name of a minor through a guardian, from which bank account can subscription payments be accepted?

[ A ]From the bank account of the minor, parent, or legal guardian of the minor, or from a joint account of the minor with the parent or legal guardian.[ CORRECT ]
[ B ]From any unrelated third-party bank account provided the cheque amount is below Rs. 10 lakhs.
[ C ]Exclusively from an overseas foreign currency corporate bank account based in the United States.
[ D ]From the bank account of the mutual fund distributor distributing the scheme.
Takeaway

Option A is correct: From the bank account of the minor, parent, or legal guardian of the minor, or from a joint account of the minor with the parent or legal guardian.

Derivation
Under revised SEBI circulars governing investments in the name of minors: Payment for subscriptions by any mode can be accepted from the bank account of the minor, parent, or legal guardian of the minor, or from a joint bank account of the minor with the parent/legal guardian. The minor is the sole holder and cannot have joint holders. Upon the minor attaining majority (age 18), all standing instructions (SIP/STP) freeze, and the folio is locked until the Minor Attaining Majority (MAM) KYC procedure is completed. This tests minor account rules. A common error is assuming payments can come from unrelated third parties.
Why the others fail
B — From any unrelated third-party bank account provided the cheque amount is below Rs. 10 lakhs.
Third-party payments from unrelated individuals are strictly prohibited under Anti-Money Laundering and SEBI regulations.
C — Exclusively from an overseas foreign currency corporate bank account based in the United States.
Minor accounts for resident Indians do not require overseas corporate bank accounts to process domestic rupee subscriptions.
D — From the bank account of the mutual fund distributor distributing the scheme.
Accepting subscription funds from a distributor's bank account constitutes a severe violation of third-party payment rules.