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Jul 12, 2012, 08.23 AM IST | Source: CNBC-TV18

MF entry load review: Cheer for distributors?

Securities and Exchange Board of India (SEBI) maybe asked to relook at the mutual fund (MF) entry load norms, reports CNBC-TV18’s Siddarth Zarabi quoting sources.

Securities and Exchange Board of India (SEBI) maybe asked to relook at the mutual fund (MF) entry load norms, reports CNBC-TV18’s Siddarth Zarabi quoting sources.

Pretty strong chances of this becoming one of the issues that will be addressed on a priority basis.

A sort of extension agenda has been drawn up ever since the prime minister has taken charge of the finance ministry. It is learnt that there will be a meeting that the finance ministry will organize with industry association and stakeholders from the mutual fund community and distributors on July 2.

There has already been a lot of pressure and representations who had spoken about the fact that SEBI former chairman Bhave’s decision, while protecting investors, had caused great problems for mutual fund distribution and that is reflected in some of the numbers that have come out. Ofcourse mutual fund distributors are compensated in some other forms and government some officials say that SEBI will be formally asked to relook at this.

It is difficult to say if entry loads will come back. Whatever is done, it will try and balance the interests of investors but also make sure that the mutual fund industry can get broader and deepened in terms of distributing its products and reaching out to a much larger subscriber base.

Also watch the accompanying video.

READ MORE ON  SEBI, MF, entry load

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