SEBI chief asks MFs to focus retail market
The Securities and Exchange Board of India (SEBI) Chairman, C. B. Bhave urged mutual fund industry to implement know-your-customer (KYC) norms properly, asking special attention towards retail investors for mutual fund industry to further grow.
Mr. Bhave emphasized the need to simplify liquid schemes of mutual funds, expressing satisfaction over performance of the mutual fund industry in tough times of global slowdown.
Speaking at the Fifth CII Mutual Fund Summit-2009 on "Indian mutual fund industry - the future in a dynamic environment", Mr. Bhave said, "If the mutual fund industry wants diversity, importance of non-corporate investors should be realized. It is in the interest of the industry to have increased investor participation."
SEBI chief advised MF industry to refrain from fixed maturity plan which have assets beyond the period of that security. He said, "When it comes to the industry vs investors, we are more inclined to protect the interest of the investors. Commissions are paid from the investor's pocket. So why is the MF industry finding it difficult to convince the investors about that."
Arun Nanda, Deputy Chairman, CII Western Region, in his welcome address, asked for collective efforts to achieve adequate growth rate in the MF industry, highlighting the need to focus on untapped retail market of the country.
