Mumbai : “Performance-linked incentives for the mutual fund industry are under review”, Anant Baruah, whole-time member of the Securities and Exchange Board of India (SEBI), said on Wednesday.
Speaking at a mutual fund summit organized by the Confederation of Indian Industry (CII) in Mumbai, Baruah said, “The performance-linked incentive under review will attract more investments as the mutual fund industry already ensures productive use of savings.”
At the summit, SEBI Executive Director Manoj Kumar said, “SEBI B30 is working on building a new better and more inclusive framework of incentives which will be much better.”
Millennial investors are the driving force of the mutual fund industry in India, with over 85 lakh new millennials joining the mutual fund industry in FY19-FY23, the CII-CAMS report on the mutual fund industry has revealed.
“Mutual fund products ensure transparency, uniform treatment of unit holders and uniform applicability of net asset value,” he added.
Kumar mentioned that SEBI as a regulator needs to continuously improve and become more collaborative in nature. With each department of SEBI having a technology vertical focused on adopting technology and becoming data driven, work on new and improved B30 incentive framework is underway, he said.
“The Indian financial industry is better positioned in terms of best practices, where SEBI is working on building a more inclusive model,” he added.
The state’s drive towards financial inclusion and retail participation in the markets is expected to drive demand for mutual fund products in a big way. These two factors together will drive the growth of assets under management (AUM) across asset classes over the next few years, said Sandeep Sikka, Chairman, CII WR Taskforce on Banking and Finance. CII Mutual Fund Summit and Executive Director & CEO, Nippon Life India Asset Management.
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