AMFI Chairman Sundeep Sikka urged SEBI chief U K Sinha to relax advertising norms. He made this request at the recently held 11th CII MF Summit in Mumbai.
Sikka said that the mutual fund industry has to follow stringent advertisement norms. It is difficult for the MF industry to communicate with investors. “Mutual funds have consistently outperformed the benchmark. For e.g.:- Rs.10,000 invested in a few equity funds has grown to Rs.9 lakh in 20 years. We want to convey these messages to investors,” he said.
Earlier, AMFI had put forth its recommendation on advertisement norms before SEBI Mutual Fund Advisory Committee (MFAC). The committee will discuss this matter in the next meeting, confirmed H N Sinor, CEO, AMFI. However, Sinor did not divulge the details of the recommendations made to the committee.
Over the years, SEBI has introduced many rules on mutual fund advertising.
In addition, Sikka has urged SEBI to propose the Ministry of Finance to give additional tax sops on ELSS and retirement linked mutual fund schemes. “Currently, ELSS comes under the already crowded 80 C space. We need separate tax sops for ELSS and retirement linked mutual fund schemes,” said Sundeep.
