Refusing to budge on mandatory disclosure of commissions and other agent payouts by mutual funds, regulator Sebi today said it is in favour of a model where investor buys these products directly without any middlemen and a new online platform for buying and selling these instruments would be in place very soon.
“We should worry more about the investors than about those doing business of mutual fund distribution. Globally, the mutual fund is moving towards direct buying. Anyway, IFAs account for less than ten per cent of mutual fund industry’s asset under management,” Sebi Chairman U K Sinha said here today.
He ruled out any relook at commission disclosure norms and said there are more people doing transactions on ecommerce platforms in India than those transacting in mutual funds.
“If people can buy on ecommerce platforms directly, why cannot they do the same about mutual funds,” he said, while adding that the new framework for providing an online platform for mutual funds should be put in place soon after the next meeting of Nandan Nilekani committee in this regard on May 30.-from ET