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SEBI’s Regional Director, G Ram Mohan Rao has appealed to intermediaries like mutual fund distributors and registered investment advisors to protect their clients from falling prey to unauthorized schemes. He was speaking at an event organised by eastern India’s MFD association – ICAA.
Rao said that just like Indian army protects our borders from enemies, MFDs/RIAs should protect investors from making investment in illegal schemes.
The Regional Director advised associations like ICAA and MFDs/RIAs to put a grievance redressal mechanism on their websites where people can report about such ponzi schemes. Further, these complaints can be forwarded to SEBI for appropriate action.
Rao further said that eastern region offers a lot of opportunities to MFDs/RIAs. According to him, while the number of MF folios grew by 11% in the last one year, the number of new PANs went up by 13.83% in eastern region. Also, eastern India contributes just 3.7% to the total AUM.
Rao also recommended to MFDs/RIAs to give real life examples to set the right long-term expectation.
