In an interview published in the ‘Economic Times’ newspaper today, SEBI chairman U K Sinha has said that the market regulator is trying to boost sales of direct plans through online platforms.
Sinha said that SEBI is keen on reducing costs of distribution in mutual funds by allowing MF sale through e-commerce platforms. “One of the ways to do it is to find a less expensive way to distribute mutual funds. That is why we have appointed a committee headed by Nandan Nilekani where we are trying to use the internet mode for buying and selling of mutual funds.”
SEBI Chief further said, “Over the next few months, sale of mutual funds through the technology platform will improve. We are trying to ensure that direct investments into mutual funds get a boost. So, through a combination of these routes we are trying to reduce costs.”
A few weeks back, the market regulator has reportedly nudged fund houses to promote direct plans. The regulator is said to have cited an example of an e-commerce platform. “Citing an example of RedBus (a portal where users can book bus tickets), the market regulator has communicated that if RedBus can sell tickets of Rs. 5,000 crore a year, why it can’t be replicated in the mutual fund distribution space?” said an official to whom SEBI had communicated this.
