IFAs and fund houses may be allowed to distribute mutual funds through e-commerce websites.
In a fresh twist, SEBI is said to have dropped the third NAV plan or e-commerce plan for e-commerce platforms, said sources privy to the development.
This was discussed in the AMFI board meeting held in Mumbai today. Sources said that SEBI has shared this development with AMFI. However, SEBI is open to receiving feedback on the third NAV concept and may implement it in future, said sources.
Two months back, SEBI had constituted a committee headed by Nandan Nilekani to recommend measures to reduce cost structure of mutual funds. Sources said that the committee has been proactively working on this new distribution channel and is likely to give its recommendations this month.
Sources in the know said that the committee is likely to ask e-commerce distributors to work in a tie-up model with IFAs (for regular plans) and fund houses (for direct plan).
“Since e-commerce websites work on market place model in which they have a tie up with multiple sellers, these websites may be allowed to have a tie up with IFAs who already have skill sets and expertise on advisory and distribution,” said a senior official of the foreign fund house.
Recently, at the Assocham’s 14th Mutual Fund Summit, Ananta Barua, Executive Director, SEBI said that there would be three routes through which mutual fund would be distributed on e-commerce – distributor route (both online and offline facility), only distribution route (online distribution) and advisor route (direct route).
