Single KYC for all SEBI regulated products
The move would help the investment process in mutual funds and equities become swift and hassle free for investors
Mumbai: SEBI is working on introducing single KYC requirement for all products regulated by it. “We are planning to make KYC norms simple and uniform," said U K Sinha, Chairman, SEBI at the seventh CII MF Summit.
SEBI recently introduced KYC norms for all investments sizes in mutual funds. Single KYC norms could help the investment process become swift and hassle free for both distributors and investors.
SEBI asks MFs to disclose institutional & retail AUM
Mumbai: SEBI in a MF summit said that it has asked mutual fund houses to disclose the institutional and retail share of their assets under management.
“Institutional business is never done at the expense of retail investors,” said U K Sinha, Chairman, SEBI.
Mr Sinha also said that the fund’s performance and its track record also have to be made public in order to help retail investors make informed choice. He also stressed on regulating distributors in an orderly manner.
SEBI keen to incentivize distributors
SEBI is also trying to put in place disclosure based compliance for large distributors
Mumbai: The seven member committee set up SEBI has recommended Rs 100- Rs 150 as commission to distributors, according to a source close to the development. It will be applicable for new investors.
Mr Sinha said that the committee has submitted its report to SEBI and the board has to take a final call on the matter.
“Incentives have to be provided in a manner that is not very costly. There is a need to incentivize the distributor. In what manner it will be done we have not closed our options on that. But I don’t think re-introduction of entry load is the solution on the table,” said U K Sinha, Chairman, SEBI at the seventh MF CII event held today.
SEBI is also working on improving the penetration on mutual funds in the remote corners of the country. “Our goal is to reach out to those who are first time investors. The geographical distribution is much skewed and that is a cause of worry for us,” said added Mr Sinha.
“We are looking towards the large distributors first. We are looking towards disclosure based compliance. But our attempt would be to regulate the distribution industry in a non-disruptive manner,” added Mr Sinha.
On allowing foreign investors in mutual funds
“We have drawn out a detailed plan for foreign investors to invest in Indian equity mutual funds. This requires consultation with SEBI, RBI and the government. This consultation process is still not complete. But hopefully, this being a budget announcement it should not take too much of time,” said U K Sinha.
AMFI asks distributors to form regional association
Mumbai: The industry body AMFI urged distributors to form a regional level association of distributors. H N Sinor, CEO, AMFI said that Chennai’s popular group IFA Galaxy can head such a regional association and can raise various issues faced by them on a regular basis with AMFI.
