Comments
SEBI Chairman U. K. Sinha has called on the mutual fund industry to enhance its level of digitisation.
Sinha observed that there was some disconnect for customers when it came to buying financial products, more so because distributors of the financial sector, especially distribution, had not offered digitisation.
He observed that the banking sector had overtaken the securities markets in terms of digitisation/ electronic transaction processing with 30 per cent of their transactions being done electronically and by value this constituted 3.2 per cent.
In terms of value it was 1.3 per cent for the mutual fund industry, while about Rs 133 crore worth of money was being invested in mutual funds through mobile phones.
Sinha said, “Three years ago 9,500 bank branches were ASBA-enabled, now it is 99,000. Hence, we made ASBA compulsory for IPOs effective January 1, 2016, after observing that more than 99 per cent of the applications originated from investors having accounts with ASBA-enabled bank branches.”
Sinha urged the MF industry to make transformational changes for growth.
“If we look at the customer experience from mutual funds, only seven per cent is positive. This shows early signs of weakness in the industry and if this is not addressed, the optimism will be short-lived.”
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.