Sebi's new ex­pense charge regime to in­crease mu­tual fund pen­e­tra­tion

The Pak Banker - - FRONT PAGE - NEW DELHI -AFP

Se­cu­ri­ties and Ex­change Board of In­dia's (Sebi) de­ci­sion to al­low mu­tual fund houses to charge ad­di­tional ex­penses from cus­tomers from be­yond top 30 cities, as against 15 ear­lier will help in in­creas­ing pen­e­tra­tion of such prod­ucts, ex­perts said.

"Sebi is now wor­ried to de­velop the in­te­ri­ors of B-30 cities. So it au­gurs well for fi­nan­cial in­clu­sion and avail­abil­ity of mu­tual fund in­vest­ment prod­ucts to the re­tail peo­ple," Quan­tum Mu­tual Fund man­ag­ing di­rec­tor and chief ex­ec­u­tive of­fi­cer (CEO) Jimmy Pa­tel said.

Echo­ing the view, Ashish Chauhan MD and CEO BSE, which runs mu­tual fund dis­tri­bu­tion plat­form BSE StAR MF, said that the move will help pen­e­tra­tions be­yond 30 cities. "The present ef­fec­tive B15 con­cept had in­deed helped pen­e­tra­tions be­yond 15 cities and it presently ac­counts for nearly 20 per cent of the in­dus­try's as­sets un­der man­age­ment," he said.

Sebi, on Fri­day, per­mit­ted an ad­di­tional 30 ba­sis points of ex­tra ex­penses to be charged to a mu­tual fund to in­cen­tivise dis­tri­bu­tion of such prod­ucts in all cities ex­cept the top 30 as against cities be­yond top 15 so far.

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