Mutual Fund Rules Change: Preparations for change in mutual fund rules, this is SEBI’s plan for investors

SEBI Executive Director Manoj Kumar said – We are reviewing the mutual fund regulatory framework to make business easier for all stakeholders including the regulator.

Mutual Fund Rules Change: If you are an investor associated with mutual funds, then this news is of your use. Actually, the Securities and Exchange Board of India (SEBI) is comprehensively reviewing the mutual fund rules to make them more investor-centric and industry-friendly. SEBI Executive Director Manoj Kumar said – We are reviewing the mutual fund regulatory framework to make business easier for all stakeholders including the regulator. Stakeholders said that the existing rules governing the sector are the longest and need simplification to keep pace with the emerging needs of investors and industry innovations.

Draft rule will be ready soon

Without giving any timeline for the implementation of the new rules, Manoj Kumar said that the process has started and soon we will come up with a draft rule for feedback and consultation process. Kumar outlined SEBI’s strategic blueprint to strengthen India’s securities market, in which mutual funds have been established as an important pillar in promoting inclusive financial development and investor protection.

A consultation paper is also being prepared on regulations governing advisory functions in mutual funds. Manoj Kumar said that major market changes have taken place in India under the leadership of SEBI. Another change is coming through the mutual fund revolution.

How much has the monthly SIP contribution reached

Manoj Kumar said that the assets under management (AUM) of India’s mutual fund industry has crossed Rs 72 lakh crore and monthly SIP contribution has reached Rs 28,000 crore, although the investor base is limited to just five crore in a population of 140 crore. SEBI is also actively reviewing scheme classification norms to make mutual funds more intuitive for investors, as well as ensuring that all offerings are ‘as per the label’, to prevent mis-selling.

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