Today in the country Crores of people are investing in mutual funds. The Securities and Exchange Board of India (SEBI) is constantly taking steps to protect the interests of investors. Now SEBI is going to conduct a comprehensive review of the rules related to mutual funds, so that they can be made favorable to more investors and for the industry. SEBI Executive Director Manoj Kumar said at the 17th Mutual Fund Summit organized by the Indian Chamber of Commerce (ICC) on Saturday, “We are recruiting the entire mutual fund regulatory structure with the aim of making business easier, including regulators, for all stakeholders, including regulators.”
Mausada will be released soon
The stakeholders say that the current rules that control the mutual fund area are very wide and complex. These rules need to be made simple and practical in line with the changing needs of investors and innovations in the industry. SEBI Executive Director Manoj Kumar said without any certain deadline that the process of preparing the new rules has started. He said, “We will soon present the draft rules for response and consultation.” Kumar referred to SEBI’s strategic plan to strengthen India’s security market, with mutual funds established as a major pillar promoting inclusive financial development and investor protection.
Rules will come for mutual fund advisor
SEBI is preparing a consultation paper for the purpose of organizing advisory functions associated with mutual funds. Giving information in this regard, SEBI Executive Director Manoj Kumar said that under the leadership of SEBI, there have been major changes in India’s financial markets and now the country is moving towards another change through mutual fund revolution. Kumar said that the total management of the mutual fund industry in India has crossed the asset (AUM) of the total management of Rs 72 lakh crore, while the investment figure has reached Rs 28,000 crore every month through the Systematic Investment Plan (SIP).
However, he also said that the number of mutual fund investors in a country with a population of 140 crores is still limited to only five crores, which are being made to increase. SEBI is actively reviewing the criteria of Scheme Categorization to make Mutual Fund more investor-friendly. Along with this, it is also being ensured that investment plans should be demonstrated as per their ‘label’, so that any kind of wrong sales can be prevented with investors.
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