SEBI is likely to come out with the guidelines on distribution of mutual funds through e-commerce websites like FlipKart, Amazon and Snapdeal soon. The decision was taken at a recently held meeting of SEBI’s Mutual Fund Advisory Committee, said sources who attended this meeting.
In addition to regular and direct plans, SEBI is looking to introduce a third plan in mutual funds called e-commerce plan. Sources privy to the development told Cafemutual that the TER of such schemes would be somewhere between direct plan and regular plan.
Recently, Business Standard has reported that the commission on MF schemes sold through such websites will be capped at 50 bps.
Two months back, SEBI has constituted a committee headed by Nandan Nilekani to suggest measures to reduce cost structure in mutual funds. Sources said that the committee has already met three times and is likely to give its recommendations by November.
Earlier in July, SEBI Chairman had said, “The e-commerce industry in India has grown by CAGR of over 48% in the past few years. In fact, in the coming decade, it is expected to grow at a CAGR of 45%. India is a market where a large number of people use such platforms to buy goods and services. I am sure all of us would have participated in at least one e-commerce transaction. Why can’t mutual fund industry provide a similar service to investors? 99% of people are dependent on someone’s help to buy mutual fund schemes. There is some disconnect between the ability of customers using such technologies and what MF industry has provided.”
