CB Bhave, Chairman, Securities and Exchange Board of India (Sebi) convened a meeting with the mutual fund industry to get the industry's feedback on the host of changes that the market regulator has implemented. The mutual fund industry that has been hit hard with the abolition of entry load and the subsequent regulation of exit load finally found a platform to express its concerns.
Sources say that Sebi is unlikely to roll-back the abolition of entry load and mutual funds will have to work within the new framework. Sebi has asked mutual funds to consider bringing down the tenure for exit loads. Some mutual funds had raised the exit load tenure to beyond one year.
The industry is concerned as distributors are not pushing mutual fund scheme sales. They also expressed concern on the high distribution charges. Mutual funds fear losing out to insurance products.
From August 1, the market regulator had abolished entry load in mutual funds and capped the expenses of asset management companies out of exit load to 100 bps.
Sources say that Sebi is unlikely to roll-back the abolition of entry load and mutual funds will have to work within the new framework. Sebi has asked mutual funds to consider bringing down the tenure for exit loads. Some mutual funds had raised the exit load tenure to beyond one year.
The industry is concerned as distributors are not pushing mutual fund scheme sales. They also expressed concern on the high distribution charges. Mutual funds fear losing out to insurance products.
From August 1, the market regulator had abolished entry load in mutual funds and capped the expenses of asset management companies out of exit load to 100 bps.
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