Performance linked incentive for MF industry to garner more investments, says SEBI official

Performance linked incentives, under review, will garner further investments as the mutual fund industry is already ensuring productive utilisation of savings, said Ananta Barua, whole time member, Securities and Exchange Board of India (SEBI) at the 17th Edition of CII Mutual Fund Summit in Mumbai.

“Mutual fund products ensure transparency, uniform treatment of unit holders and uniform applicability of Net Asset Value,” he added.

Manoj Kumar, Executive Director, SEBI while speaking at the summit said that as a regulator SEBI would constantly fine-tune and become more collaborative in nature.

“SEBI is working on building a new improved and inclusive framework of B30 incentives which will be far more superior,” he said.

“Technology adoption and becoming data-driven are the key focus areas being explored with each department of SEBI having a technology vertical,” he added.

“Indian financial industry is better placed in terms of best practices with SEBI working on building a more inclusive model,” he further said.

Sundeep Sikka, Chairman, CII WR Taskforce on Banking & Finance; CII Mutual Fund Summit & ED & CEO, Nippon Life India Asset Management said a larger push from the state towards financial inclusion and retail participation in the markets would drive demand for mutual fund products.

“These two factors together will drive Assets Under Management (AUM) growth across asset classes over the next few years,” he said.

On the occasion the CII-CAMS Report was released. The report highlights that millennial investors are the driving force of the MF industry in India with over 85 lakh new millennials joining the industry between FY19-FY23.