High networth is essential for penetration of MFs: SEBI

India Infoline News Service | Mumbai |

S Raman also said the SEBI has taken up issues like additional tax concession of Rs 50,000 for investors who invest in pension products

SEBI whole-time member S Raman on Friday said that high networth is essential for better penetration of mutual fund industry as asset management companies need financial strength to support growth.
Speaking at the launch of BSE StAR MF in Mumbai, Raman said that around the world for any financial activity financial strength is essential for any organisation.
According to SEBI, Rs. 10 crore is a very small amount, which has been fixed several years ago. Even if an individual adjusts it with inflation, it will be around Rs 30 crore now.
In its last board meet, SEBI raised the minimum capital requirement for setting up a mutual fund house to Rs 50 crore from Rs 10 crore.
S Raman also said the SEBI has taken up issues like additional tax concession of Rs 50,000 for investors who invest in pension products through mutual fund route.
The Bombay Stock Exchange (BSE) on 6th March launched a mutual fund transaction platform called BSE StAR MF.
This platform allows independent financial advisers or mutual fund distributors to directly buy and sell fund units on the stock exchange. They can even register systematic investment plans (SIPs) for their clients on this platform.
The platform launched in December 2009 was only open to BSE brokers earlier.
 

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