Beyond taxes: 6 investment-related changes coming into effect from April 1 in FY 2025-26

In this, we have provided a list of six investment-related developments or changes that investors, including salaried individuals, should know going into Financial Year 2025-26.

SIF regulations

Strict timelines for NFOs

As per the new rules, AMCs will have to deploy the amount raised through NFOs within 30 business days from the date of unit allotment.

If the funds remain undeployed even after 60 days, then the AMC will have to stop accepting fresh inflows into the scheme. Moreover, AMC will need to allow investors to exit without any exit load in this case. Further, they will also need to inform investors via email/SMS about their right to exit without penalties.

New commission norms for MFDs

SEBI's new commission norms for mutual fund distributors will also come into effect from April 1. According to this, if an investor switches from an existing scheme to a new NFO, then the distributor will earn the lower of the two commissions between the old scheme and the NFO. This provision is aimed at curbing mis-selling by distributors.

DigiLocker for MF/Stocks nomination

SEBI's MITRA platform

NPS Vatsalya

Parents are allowed to invest in the NPS Vatsalya account of their children. But from the new financial year starting on April 1, they will also be able to claim an additional tax deduction of up to ₹50,000 against their contribution to this scheme under the old regime. However, if you are investing in your as well as your child's NPS accounts, the total additional deduction allowed will be ₹50,000 only.

Although we listed NPS Vatsalya in the list of tax changes, we have put it here also, since this is an investment scheme for retirement.