Mumbai: Market regulator to promote mutual fund (MF) investment and ensure productive use of savings SEBI Working on a Performance Linked Incentive (PLI) scheme for mutual fund houses.
SEBI whole-time member Anant Barua said here on Wednesday that a discussion paper on how to implement the scheme would soon be placed in the public domain. were speaking on CIIannual of mutual fund summit in Mumbai.
Another top Sebi official said the regulator is studying a new framework to reward semi-urban and rural distributors in place of the “B-30 incentive scheme”, which was suspended because some fund houses It was being misused by T-30 refers to the top 30 geographical locations in India from where the fund industry has raised the most money, while B-30 pertains to locations beyond the top 30.
SEBI Executive Director Manoj Kumar said the regulator is working on a new framework to encourage MF agents in B-30 sectors which will be more inclusive. Under the B-30 plan, the fund industry could charge higher commissions from these investors, which in turn were passed on to the distributors who received those investors.
Baruah reminded the industrialists of the fundamentals on which the MF sector is based. These include “high standards of disclosure and transparency, fair treatment of mutual fund investors, judicious resolution of conflicts of interest, prevention of mis-selling by fund houses and distributors, and high standards of governance”.
Kumar said SEBI needs to reform and become more cooperative. Technology adoption and becoming data-driven are key focus areas for the regulator. He also urged the industry players to adopt a similar approach towards technology to improve efficiency and reduce costs.
AMFI officials were also working on a new approach to bring more investors into the industry through a process that would draw from the government’s successful Jan Dhan approach for financial inclusion.
SEBI whole-time member Anant Barua said here on Wednesday that a discussion paper on how to implement the scheme would soon be placed in the public domain. were speaking on CIIannual of mutual fund summit in Mumbai.
Another top Sebi official said the regulator is studying a new framework to reward semi-urban and rural distributors in place of the “B-30 incentive scheme”, which was suspended because some fund houses It was being misused by T-30 refers to the top 30 geographical locations in India from where the fund industry has raised the most money, while B-30 pertains to locations beyond the top 30.
SEBI Executive Director Manoj Kumar said the regulator is working on a new framework to encourage MF agents in B-30 sectors which will be more inclusive. Under the B-30 plan, the fund industry could charge higher commissions from these investors, which in turn were passed on to the distributors who received those investors.
Baruah reminded the industrialists of the fundamentals on which the MF sector is based. These include “high standards of disclosure and transparency, fair treatment of mutual fund investors, judicious resolution of conflicts of interest, prevention of mis-selling by fund houses and distributors, and high standards of governance”.
Kumar said SEBI needs to reform and become more cooperative. Technology adoption and becoming data-driven are key focus areas for the regulator. He also urged the industry players to adopt a similar approach towards technology to improve efficiency and reduce costs.
AMFI officials were also working on a new approach to bring more investors into the industry through a process that would draw from the government’s successful Jan Dhan approach for financial inclusion.