Three years after the entry load ban, SEBI heard the voice of distributors yesterday in an attempt to put the MF industry back on track. In an exclusive interview, Ramesh Bhat, President of IFA Galaxy, recounts some issues discussed with the regulator.
What
were the points discussed yesterday?
Most of the time was devoted to discuss the need for incentivising distributors, especially in Tier-II and Tier-III cities, for the efforts they put in to sell products.
What was SEBI’s response to your demands?
SEBI has asked all IFAs to increase the volume of the business that we do currently.
Did SEBI give you any particular message?
No, but we all were well received and they heard our views.
What is the sense that you get on SEBI’s intentions?
Let us wait and watch. We have done our job and it’s SEBI's turn now.
What would you favour—reintroduction of entry load or a variable load?
Whatever you call it, there should be some revenue for advisors to survive in this industry.
Do you think that SEBI will increase incentive for distributors in small towns as suggested by you?
Let us wait for the outcome.
What was your feedback to SEBI on the concept paper, particularly on the ‘agent’ and ‘advisor’ definition?
IFA Galaxy has already given its feedback long back to SEBI.
What measures need to be taken for IFAs to penetrate smaller towns?
The following measures will help:
1) Simplify procedures
2) Introduction of common application forms
3) Introduction of common service forms
4) Bringing in uniform minimum investment limit for investments
5) Ensure that scheme name is prefixed with fund category
6) The distributor should be incentivised.
(Do write in and let us know what SEBI needs to do to revive the fortunes of the mutual fund industry).
