MF News SEBI to supervise behaviour of mutual fund distributors: SEBI Chief

SEBI to supervise behaviour of mutual fund distributors: SEBI Chief

However, AMCs will be held responsible for the wrongdoing of their MFDs, said Madhabi Puri Buch, SEBI.

Nishant Patnaik Feb 23, 2025

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Very soon, SEBI will use its supervision system to oversee activities of mutual fund distributors.

Replying to a query at the launch of Rs.250 SIP, Madhabi Puri Buch, Chairperson, SEBI said that the market regulator will start supervision of business done by MFDs to analyse behaviour of mutual fund distributors from the next financial year.

Buch said that if the market regulator finds anything wrong, the AMCs will be responsible for the activities of their distributors.

Since mutual fund distributors are the agents of AMCs and represent fund houses, the regulator will take strict against the AMCs for the actions of their distributors, she clarified.

Sharing the rationale, Buch said that mutual fund distributors are just one step away from being an employee of the fund house.

On rising number of schemes in mutual funds, SEBI chief said that the market regulator is in consultation with AMFI and the industry to put a cap on the number of thematic funds that AMCs can launch.

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7 Comments

Anup Agarwal · 2 months ago `

All the intermediaries should be checked and their actions should be verified as investors interest is our top priority. Why only MFDs ?

We all are here to protect interest of investors and render services to our investors.

It is ironical that many MFDs have been banned due to various irregularities found in their actions, but not even a single BANK is banned from selling mutual funds in India.

Thirupathi Rao Kandepi · 2 months ago `

Sirs, I remember that earlier there was a rule that all employees of Banks and other financial institutions ,who deal Mutual funds should have AMFI Certification.
Now Banks and financial institutions comfortably managed to have one designated EUIN certified holder for distribution of Mutual funds. Under one EUIN,they can do the business, if I am right.

Ritesh Tiwari · 2 months ago `

whereas need is to supervise amc and banks.

Ashok Kumar Jaiswal · 2 months ago

agree

CA Anand Sharma · 2 months ago `

Bank employees need not be supervised.

Vijayshree Karwa · 2 months ago `

We would welcome supervision on Mutual Fund Distributors. Just one request, do not limit it only to individual MFDs. Include Bank Relationship Managers/Personal Banker, they distribute mutual funds. I believe they might not have even passed MFD exam from NISM.

SHANKAR CHARAN Lenka · 2 months ago `

First think is not about MFD, but the Development of Business in MUTUAL FUND industry. We all the MFD Community will Welcome the steps of Regulator in which way It is incentivising the Distributors for the Development of Business.

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