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SEBI reportedly met a few individual MFDs to understand the ground level challenges faced by them in servicing their investors. This was an informal meeting in which the regulator invited handful of MFDs in Udaipur, said two people familiar with the development.
Amarjeet Singh, Whole Time Member, SEBI and Manoj Kumar, Executive Director SEBI were present during the meeting.
According to the sources, the MFDs raised several issues like:
- KYC norms should be simplified by making validation of voter ID in line with Aadhaar authentication
- Onboarding of NRIs should be made completely online. Also, NRIs should be allowed to put either email id or mobile number as contact details
- Passport should be good enough to onboard NRI clients
- Risk profiling of investors should be standardized
- Concept of insurance along with SIP investment should be reintroduced to encourage long term investments
- Some leeway should be given to MFDs to talk about fund performance through illustrations
- Performance based training and development programs should be reintroduced to motivate MFDs
The regulator not only lent a patient ear to the MFD community, they assured MFDs that they will take up some issues to facilitate ease of doing business to fund houses and their distributors, said the sources.
