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:
- How to grow volumes in the MF business
- Simplification of investment application procedures
- Introduction of some form of remuneration for IFAs
- 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.