SEBI Chief Ajay Tyagi has today said that the market regulator is working towards simplifying on boarding process of investors in mutual funds. He was speaking at the AMFI AGM 2019 held today in Mumbai.
Tyagi said that SEBI had constituted a working group with multiple stakeholders to suggest ways to simplify on boarding process for investors in mutual funds. He said that the working group has submitted its report and the market regulator is in the process of implementing its recommendations.
Further, he said that the government’s push for making investment easy in mutual funds through Aadhaar would help the MF industry grow. Last week, Union Finance Minister Nirmala Sitharaman announced Aadhaar-based KYC could be used to on board investors into mutual funds.
He said, “If we want more investors to be attracted to investments in mutual funds, the process of entry, exit and management of investments ought to be simple and easy. Recently, the Finance Minister announced that in order to improve market access for the domestic retail investors, Aadhaar-based KYC is to be permitted for opening of demat account and making investment in mutual funds. We will work with the Government on this with a view to operationalize the decision.”
