Formation of SRO will increase reach of mutual fund products: Rajiv Bajaj

MUMBAI: Formation of Self-Regulatory Organisation ( SRO) for the mutual fund industry will help increase its reach, Bajaj Capital Vice-Chairman and Managing Director Rajiv Bajaj said today.

"Formation of SRO will help in increasing the reach of the mutual fund industry by spreading awareness among investors," Bajaj told reporters here.

He also noted that there is a need to check the high attrition rate in the MF distribution business.

Market regulator Sebi is likely to appoint an SRO for mutual fund distributors soon, after notifying changes in rules for setting up the body.

Institute of Mutual Fund Intermediaries ( IMFI), Organisation of Financial Distributors (OFD) and Financial Planning Standards Board India (FPSB) have applied for appointment as SRO.

While IMFI is promoted by the Association of Mutual Funds in India (AMFI), which is an association of mutual fund companies, OFD is set up by Financial Intermediaries Association of India (FIAI), a grouping of 15 large distributors.

Managing Director and Chief Executive Officer of BSE, Ashish Chauhan, said that mutual fund houses should use the stock exchange platform for reducing cost of transaction and easy processing.