Jayant Sinha, Minister of State for Finance has reportedly said that suggestions from all stakeholders including IFAs need to be sought before framing any rules for the MF industry. He said that a proper process should be followed while drafting any rules. He was interacting with the representatives of IFA associations in Delhi today. This meeting lasted for 35 minutes.
Typically, regulators issue draft circulars to seek feedback from all stakeholders before coming out with the final regulations.
Bhushan Mahajan, Director, PIFAA told Cafemutual that Sinha has given a patient hearing to them. He said, “We got an encouraging response. The minister has told us that he will facilitate a dialogue with SEBI. He has assured that our voice will be heard.”
Praveen Chhajed, President, PIFFA said that the minister has asked them to draft a white paper which suggests ideas and strategies to increase the penetration of mutual funds through SIPs. The idea is to increase the participation of retail investors through SIP ten-fold in 10 years, he added. As on March 2016, the MF industry has over 98.50 lakh SIP with gross inflows of over Rs. 3,200 crore each month.
Chhajed said that PIFAA has initiated this interactive session with the Minister for the welfare of IFA community.
Meanwhile, the delegation has handed over a letter to the Minister in which they have requested that the commission disclosure should be in percentage terms.
Around 19 delegates from Delhi, Mumbai, Pune, Agra, Varanasi, Kolkata, Ahmedabad, Chennai and Bengaluru are said to have attended the meeting.
