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MF News Global regulatory trends will drive Indian MF industry: SEBI

Global regulatory trends will drive Indian MF industry: SEBI

SEBI signals that the MF industry needs to watch out for global regulatory headwinds to understand the future trends.
Nishant Patnaik Dec 14, 2017

Global regulatory trends will drive the future of the Indian mutual fund industry, said G Mahalingam, Whole Time Director, SEBI, according to a press release issued by CII.

Speaking at the 12th CII Mutual Fund Summit held recently in Mumbai, Mahalingam pointed out the need to view growth in India’s mutual fund industry from the perspective of global regulatory trends. He further pointed out that in the present positive scenario; there was a need to factor in aspects, which could influence future growth.

He expressed his concerns over the reduced liquidity that could affect inflows into mutual funds. “The US Fed tightening cycle may come in March or April next year and the impact of that on Indian markets would be very significant,” he added. Pointing out the inter-connect between mutual funds, banking, insurance and pension funds; he raised a cautionary note, saying that any reduction in liquidity would obviously have its impact.  

On fee versus commission, Mahalingam said that the aspect of fees vis-à-vis commission needs to be considered when one mentioned future growth potential, he said. Currently, the market regulator is evaluating global practices in the advisory business before finalizing the RIA regulations.

In an earlier industry event, Mahalingam had said, “We are actually studying what is happening in other jurisdictions. UK, for example, has come out with the report on fee vs commission and they have clearly put forth the impact of this shift. We are closely looking at it and seeing what fits best for India.” Mahalingam was signalling to UK’s Retail Distribution Review (RDR) report conducted to review the impact of segregation of advised (commission) and non-advised portfolios (direct).

 

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3 Comments
Prashant · 8 months ago
In that case we should dissolve SEBI because we do not want to waste money by paying them hefty salaries. We will see the global regulations aand implement what we feel is right. That way we will.save lot of money and we will be globally recognized as well....shame on you...shame shame shame
tdevendra · 8 months ago
it is the big amcs game plan to dethrone the entire ifa's fraternity in connivance with sebi. the already measures taken such as cap of commission , kyc norms , gst , banking lethargy is taking pain /stress of the ifa whose hard work paved way for big amcs /sebi salary structure while the budding IFA is struggling to meet both the ends due to inflation not related to the govt statstics. not satisfied the amcs want to decimate the entire structure of the cake of hard done by the ifa fraternity which could not digested by the above. -sadbhavana
Reply
I Plan Wealth · 8 months ago
The IFA faternity is not organised and this is the reason they(SEBI) want to experimemt with vary ideas. AMFI should convey changes in consultation with Brokers and any changes shuld be taken positively.
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