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Actively working on bringing MFs on e-commerce platforms: Sebi chairman UK Sinha

Sebi has set up a committee under another Infosys co-founder Nandan Nilekani to suggest ways for boosting mutual funds industry.

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U K Sinha, Chairman, Sebi
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The Securities and Exchange Board of India's (Sebi) Chairman U K Sinha has on Tuesday said that it is actively working towards making it possible for mutual funds (MFs) to sell their schemes on e-commerce platforms. Sebi has already set up a committee under another Infosys co-founder Nandan Nilekani to suggest ways for boosting MF industry.

Noting that people are using an online platform in a huge way to buy products, Sinha said he was meeting Nilekani later in the day and the guidelines on the same could be implemented soon. He also reiterated that a number of lessons have been learnt from the Amtek Auto crisis.

To safeguard investors' interest and help them maximise returns, markets regulator Sebi is set to tighten norms for mutual funds by asking them to lower the cost of investments and be more vigilant about risky assets, according to dna report published in October this year.

The watchdog also wants fund houses to improve their disclosure regime and make it simpler for investors by doing away with the current practice of having too many schemes.

Also Read: Sebi widens probe into Castex Technologies matter; Mutual Funds under the lens

"There are number of lessons to be learnt from this episode. And I think we will take very important remedial measures very soon," Sinha added.

JP Morgan Mutual Fund got into trouble due to its exposure to debt securities of debt-laden Amtek Auto, while a few other mutual funds have also faced similar problems with regard to corporate bonds of a few other distressed firms.

In September this year, the capital market regulator had started an investigation into possible rigging of Castex Technologies' share price through forcible conversion of foreign bonds.

 

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