Rajiv Bajaj (RB): Harshendu, how can we work for mutual advantage? What are the strings that tie us all together?
Harshendu Bindal: The whole investment world is a one big ecosystem that consists several stakeholders. The ecosystem can only thrive if all three stakeholders do well. The other important stakeholder is the regulator. As long as you keep the consumer happy, and do everything in the interest of the consumers, more or less, you have the regulator on your side. So, for now, keeping the regulatory issues aside, unless we start seeing this whole ecosystem as one, I don’t think we will do well in the long run.
RB: Neeraj, there have been a lot issues that are tearing us apart. What are be the reasons?
Neeraj Choksey: I think Harshendu rightly said that all the stakeholders need to work collectively. In the recent past, the regulatory changes have impacted the revenues of distributors. There is a communication gap. There is a lack of trust among distributors and AMCs.
RB: Sundeep, you represent the industry body. What are your views on the tussle between AMCs and distributors?
Sundeep Sikka: Let me first discuss about forging a good relationship with distributors. The relationship between the distributor and an AMC is akin to a relationship between a husband and a wife. You don’t have to plan and make a strategy. There are ups and downs in any relationship. But I think we all enjoy the journey together. My perspective on various stakeholders is little different. AMCs and distributors are not different. Ultimately, both AMCs and distributors are surviving because of investors and because of the strong regulatory environment.
RB: What according to you is the regulator expecting from us?
Sundeep: The regulator expects the industry to evolve. Changes are bound to come and we have to adapt to the changes. The regulatory changes do cause some disruption in the short run but we have to remember that the industry is only going to grow from here. The regulator expects AMC and distributors to comply with its rules. Unlike before, SEBI is now more open to receiving feedback.
Rajiv: Nimesh, what are your views on taking the industry forward?
Nimesh Shah: Whenever there are changes, I feel there is a lot of noise. But somewhere, the regulators try to align the interest of the producer, distributor and the investor. My view is that you have to see how you adapt to the market. We are blessed to be in a country like India where the market is infinite. As long as you use technology and decrease the operating cost per unit such that the marginal transaction can be taken profitably, we will do well in the industry. I believe any product which is purely for the customer will grow.
RB: Pratik, you have been with an AMC and you are now in the distribution space. How has been your experience?
Pratik Pant: The grass always looks greener on the other side. When I was working in an AMC, my experience was that this industry has been with excesses. In mid 2000s, investors did not trust financial advisors easily. Also, the bank RMs keep on changing from time to time. But, the positive part of this industry is that it is extremely transparent and regulated.
