Listen to this article
SEBI Executive Director Manoj Kumar said that focus by AMCs on the recently launched ‘Choti SIP’ (Rs. 250 SIP) and efforts to inform the investors about its utility can help increase the penetration of the mutual fund industry.
While calling mutual funds as a counter force to the current market volatility, the SEBI executive director revealed the regulator’s plan to move away from the key regulatory approach in which the regulator identifies the issues and focuses on solving them to a conducive approach where the regulator will try to create an environment where it works with the industry.
He expressed trust in the creativity of the industry and said that SEBI will give more flexibility for innovation to its partners. He hopes that this will help the industry withstand the current market volatility and cross the Rs. 100 trillion AUM mark even before CII’s estimate of 2030.
Manoj also informed the audience that the regulator is reviewing the regulation 24B of the mutual fund regulations which allows AMCs to manage and advise offshore funds, insurance funds, pension funds and provident funds as it had been pointed out as a concern by the industry. Additionally, he highlighted some operational issues related to the recent changes in the skin in the game norms for AMCs and hoped that the industry will appreciate the changes brought to address the issue.
He concluded with an encouragement to the industry to approach the regulator to share ideas and concerns for future progress.
