Some big changes are likely to take place in the office of your neighbourhood distributor, whom you go to when you want to buy mutual funds.
The changes could reflect in the way she talks to you, the way she manages your relationship, the way she charges you—or will most likely begin to charge if she hasn’t been doing that already. In general, your relationship with her is set to get deeper, more professional and better documented.
The capital market regulator Securities and Exchange Board of India (Sebi) came out with a consultation paper on 7 October, which proposes that all mutual fund distributors who embed advice—big or small—in their services, must register themselves with Sebi as registered investment advisers. The paper aims to strengthen the Sebi (Investment Adviser) Regulations, 2013.
