By IANS,
Mumbai:Expressing concern over the recent slowdown in mutual fund industry, market regulator Securities and Exchange Board of India (SEBI) Wednesday said distributors should be given incentives to boost growth.
“With the number of folios declining and small town sales reducing, there is a need to give incentives to distributors,” SEBI chairman U.K. Sinha said at the Mutual Fund Summit organised here by the Confederation of Indian Industry (CII).
“Unless incentives are given to distributors, it will be difficult to increase penetration of the industry and help its potential for transferring gains of the economy to the remote corners of the country,” he said.
Sinha said the SEBI was working on a regulation that would help boost growth of the mutual fund industry.
“SEBI is looking into distributor regulation, but not in disruptive manner. It will be for limited number of large distributor and will be a disclosure based system,” he said.
“If we set the rules of games and apply it uniformly, it will help the industry,” the SEBI chief added.