SEBI is in talks with various other regulators to introduce regulations for MF distributors
Mumbai: The SEBI chairman Mr. U K Sinha has said that SEBI is in talks with various other agencies to bring distributor regulation in India.
“We are going in for distributor regulation. Unfortunately on the one hand, we have prescribed certain restrictions on the way mutual funds (MFs) will be sold, but on the other hand there is no active implementable distributor regulation in the country so we are moving in that direction” said Mr. U K Sinha in an interview to Bloomberg UTV carried by Mint newspaper today.
Recently, SEBI had asked MFs to enforce a sales code for national distributors.
A media report few weeks back stated that the finance ministry has set up a high-level committee on ‘Financial Investor Awareness Initiatives’ which has proposed a common set of rules for sellers of financial products. The report also said that those violating the rules would be subject to penal action.
