Q1. Consider the following statements regarding the Salary Linked Systematic Investment Plan proposal being examined by the Securities and Exchange Board of India in May 2026: 1. The proposal would mandatorily replace the Employees Provident Fund subscription with mutual fund investments deducted from employee salaries. 2. The proposal envisages permitting direct deduction of mutual fund investments from employee salaries on the lines of EPF subscriptions to deepen mutual fund penetration through household savings. Which of the statements given above is/are correct?
Explanation
Both statements are incorrect. Statement 1 is incorrect: The SEBI proposal does not replace EPF subscriptions; it only seeks to enable an additional salary-linked SIP route for mutual funds. Statement 2 is incorrect because the proposal would permit (not mandate) direct deduction of mutual fund investments from employee salaries on the lines of EPF subscriptions; the option being optional rather than as described, and SEBI is only examining the proposal, not implementing it. Hence, neither statement is correct as stated.