Securities and Exchange Board of India, SEBI has made it compulsory for all investments into Collective Investment Scheme, CIS funds to be made through banking channels, and not in cash. The step has been taken to thwart money laundering activities through such schemes.

Besides, the new norms would also help improve transparency in fund-garnering activities through CIS activities and would make it easier to identify the source of funds and real investors involved in such schemes. The new norms came into effect from yesterday.