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11 May 2012 10:30 AM
SEBI meets AMC heads; gives patient hearing but no hints of changes to come 
Pallabika Ganguly
 
AMC CEOs cautious on the outcome of the meetings as SEBI has given them no hint of its thinking on the shape or direction of future changes

Market regulator SEBI is clearly in a mood to engage the industry to understand the perceptions and expectations of various stakeholders. In that context, SEBI has met IFAs and CEOs of various AMCs to discuss these issues over the past few days.

Cafemutual has received feedback from a few CEOs and the overall mood seems to be that of caution. AMCs have toned down their expectations from these meetings, and do not expect any fundamental change in the regulatory framework governing mutual funds.

Last week, SEBI had met distributor associations IFA Galaxy and FIFA to seek suggestions to overcome the constraints relating to distribution and reach of mutual funds. Over the last few days, SEBI met up with AMC CEOs.

Cafemutual has learnt that the following items were discussed during the meet:

  1. How to grow volumes in the MF business
  2. Simplification of investment application procedures
  3. Introduction of some form of remuneration for IFAs
  4. Frequency and speed of regulatory changes

Though a beginning has been made, AMCs feel that more interaction is needed with the regulator so that their suggestions see the light of day. The CEO of a global fund house who was present in the meeting says, “There were a lot of suggestions and opinions exchanged in the meeting. SEBI should take the necessary steps to rectify the situation in the industry as it is now well aware of the problems.”

The CEO of a small mutual fund house feels that the time has come to move on from meetings for the industry to truly transform itself. “We have no expectation of solutions evolving from such meetings,” said this CEO.

As of now, all stakeholders are in a wait-and-watch mode.

 
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