SEBI to set mutual fund advisory committee on mutual fund (On Jun 21 , 2008)

[swapna]

Capital market regulator Securities and Exchange Board of India (SEBI), which already has an advisory committee on secondary and primary market, has now decided to set up an advisory committee to address the issues faced by the Mutual Fund industry. In CII’s Mutual Fund Summit 2008 in Mumbai, the SEBI Chairman, Mr C.B. Bhave while talking about the complaints received regarding the way the redemptions that were being handled by the Asset Management Companies said that mutual funds’ focus was more when people invested in their funds and not so much when they made an exit. Mr Bhave referred to complaints from investors; while exiting their fund the AMCs provided fixed exit route in terms of bank account and branches where redemptions were to be made and wished that there should be flexibility and exits should be as per investors’ wish. “We are setting up an advisory committee on mutual fund that will take advice from investors and participants on what (issues) were bothering them,” he said. The mutual fund advisory committee will be set up in a month’s time, he said. The SEBI Chairman also suggested setting up of a depository that will maintain database of all mutual fund investors across the country, much in line with the depositories for the equity market.