Mumbai: The Securities and Exchange Board of India (Sebi) on Monday issued a discussion paper proposing a self-regulator for distributors and advisors of mutual fund products. Disputes between fund houses and distributors would be governed by contractual obligations, Sebi said. Currently, it is the fund houses that have a primary responsibility towards the code of conduct of mutual fund distributors that are empanelled with them. “The distributors of mutual fund products and investment advisors (IAs) are becoming important players in the market and growing in numbers," Sebi said in a release on Monday, adding that there are approximately 124,000 distributors of mutual fund products as on 28 February and 1,136 registered IAs as on 19 March. In view of the above, it is proposed to have SRO(s) to regulate the distributors of mutual fund products and IAs," Sebi said.

Source: Mint April 01, 2019 21:45 UTC