Moneylife » Mutual funds: Sebi gets active
Mutual funds: Sebi gets active
The regulator acts—and backtracks
The market regulator has reintroduced entry-load in some form in mutual funds (MFs) which was abruptly banned in August 2009 and led to a massive disruption. A transaction charge of Rs100 will be levied on existing MF folios. Sebi has also decided to levy a transaction charge of Rs150 on new MF folios. However, there would be no transaction fee on investments worth Rs10,000 or less in mutual funds. SEBI has also decided to simplify KYC (know your customer) norms and make them uniform across all market players.
Meanwhile, although SEBI is sensitive to the problems plaguing the mf industry, it can do precious little. One indicator is that it has backed off from an earlier directive to the fund houses to provide unique folios of investors. HN Sinor, CEO, AMFI (Association of Mutual Funds of India), has been quoted as saying: “SEBI has realised the difficulty in getting the number of unique folios and has asked the industry to continue with the old...
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