Heard on the street
Mutual fund distributors are leaving no stone unturned to get the Sebi to reverse its recent decisions, including scrapping entry loads.
By ET Bureau |
MF distributors seek FM help on entry load ban
Mutual fund distributors are leaving no stone unturned to get the Sebi to reverse its recent decisions, including scrapping entry loads.
With their meeting with Sebi hardly yielding any results, these distributors are now seeking an appointment with finance minister Pranab Mukherjee, after the Budget, to explain the impact of the Sebi���s latest rules on them and request him to ask the market regulator to reconsider the decisions.
While Sebi has emphasised that mutual fund advisors need to play the role of the financial advisors in advising their clients and charging a fees for the same, distributors claim that the regulators are not aware of the ground realities, especially in the tier II & tier III cities, where it is very difficult to sell financial products in return for a commission.
They feel the regulations will kill the growth of the mutual fund industry, as they will be forced to sell products with higher commission such as Ulips. The distributors are, however, hopeful that mutual fund houses will support their cause, following the example of UTI Mutual Fund���s UK Sinha.
Contributed by Bakul Chugan Tongia
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