Regulator will seek suggestions to overcome the constraints
relating to distribution and reach of mutual funds.
Distributor associations like Chennai-based
IFA Galaxy and Mumbai-based Foundation of Independent Financial Advisors (FIFA)
are set to meet SEBI on 3rd May to discuss issues relating to reach
and distribution of mutual funds. The meeting will be chaired by Prashant
Saran, Whole-Time Member of SEBI.
The regulator will discuss the following
issues in the proposed meeting:
- Issues relating to distribution
of mutual funds
- Perceived constraints to enhance
the reach of mutual funds beyond the top cities
- Suggestions to overcome these
Among other issues, a subject that is bound
to come up for discussion is SEBI’s recent concept paper which tries to segregate
the distributor community into ‘advisors’ and ‘agents’. IFAs want to avoid this
segregation, because both models are followed by the trade.
HN Sinor, CEO of AMFI, admitted in a recent interview
with the Economic Times that abolishing
entry load at one go was not such a good idea. “We need to dispassionately
review the (entry load ban) decision once again,” he said.
The introduction of transaction charge by
SEBI has not done much for the industry so far.