Comments
In a move to regulate mutual fund distribution business, SEBI on Wednesday said it has notified regulations to set up a Self Regulatory Organisation (SRO) to monitor distributors of mutual fund and portfolio management products.
“...the Securities and Exchange Board of India (SEBI) hereby appoints the date of this notification as the date on which the regulations shall come into force in relation to distributors engaged by asset management companies of mutual funds and distributors engaged by portfolio managers,” the regulator said in its notification dated January 8.
In August, last year, SEBI in its board meeting had approved the proposal made by its Mutual Fund Advisory Committee (MFAC), to set up an SRO to regulate the Mutual Fund distribution business.
The decisions followed concerns about mutual fund distributors in India not being regulated and there having various complaints against them for miss—selling of products to the investors.
Presently, the distributors need to register with Association of Mutual Funds in India (AMFI) and their registration can be cancelled by AMFI for violation of a prescribed Code of Conduct or for any other malafide practice.
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.