Market regulator SEBI today announced measures to boost the mutual fund industry. Here are the highlights:
- Self-regulatory organization (SRO) for distributors to be formed
- SEBI to regulate advisors who charge fee
- Advisor regulations announced
- Fungibility allowed in total expense ratio (TER)
- 30 basis points (0.30%) extra spend for applications received beyond top 15 cities
- Exit load to be credited to the scheme
- Service tax to be charged to investors
- SEBI board to make recommendation to allow equity funds under Rajiv Gandhi Equity Savings Scheme (RGESS)
- Higher disclosure requirements from AMCs - Fund Inflow data, New product labelling mechanism
- SEBI Committee to formulate a MF policy in 6 months – to look at tax treatment, other products, AMC obligations
