Thursday, December 15, 2011

Guidelines regulating role of advisers soon: SEBI

SEBI, which had put up a discussion paper on the role of investment advisors, has received detailed feedback.  The market regulator is set to announce norms for regulating these entities soon

Capital market regulator Securities and Exchange Board of India (SEBI) on Tuesday said it will soon come out with norms for regulating the role of investment advisors, reports PTI.

“We have received a very detailed feedback and we are undergoing a process of discussion and shortly we will come out with regulations (on investment advisers),” SEBI whole-time member Prashant Saran said here.

“It is very difficult to give a time-line. We do need to build a consensus,” he said on the sidelines of an Assocham event here.

In September this year, SEBI had proposed to bar investment advisers from acting as agents for promoting financial products.

The entities, which include banks and fund managers, would have to be registered with a self-regulatory organisation (SRO) as investment advisers, said the concept paper on Regulation of Investment Adviser issued SEBI.

“No financial incentives/consideration would be received from any person other than investors seeking advice. In case of advice regarding investment in entities related to the investment adviser, adequate disclosures shall be made to investor regarding the relationship,” the paper had said.

It had said, “The person who interfaces with the customer should declare upfront whether he is a financial adviser or an agent of the manufacturer.”

Mr Saran said mutual funds must increase their penetration in smaller cities and rural areas while financial literacy should spread among the uneducated also.

The focus should be on small investors so that the base widens. Financial education should be sector-specific and product-neutral, he said.

Most of the money parked in mutual funds comes from institutional investors which include corporates, banks and foreign institutional investors (FIIs).

Many financial products are becoming complicated and it is not easy for even an educated person to understand and analyse them, he said.

At the same time, Mr Saran said financial structures across the world do not command as much respect as they used to in the past.

Source: http://www.moneylife.in/article/guidelines-regulating-role-of-advisers-soon-sebi/22173.html

Post a Comment

Just click away from joining most active Mutual Fund India google group

Google Groups
Subscribe to Mutual Fund india
Email:
Visit this group

Aggrasive Portfolio

  • Principal Emerging Bluechip fund (Stock picker Fund) 11%
  • Reliance Growth Fund (Stock Picker Fund) 11%
  • IDFC Premier Equity Fund (Stock picker Fund) (STP) 11%
  • HDFC Equity Fund (Mid cap Fund) 11%
  • Birla Sun Life Front Line Equity Fund (Large Cap Fund) 10%
  • HDFC TOP 200 Fund (Large Cap Fund) 8%
  • Sundram BNP Paribas Select Midcap Fund (Midcap Fund) 8%
  • Fidelity Special Situation Fund (Stock picker Fund) 8%
  • Principal MIP Fund (15% Equity oriented) 10%
  • IDFC Savings Advantage Fund (Liquid Fund) 6%
  • Kotak Flexi Fund (Liquid Fund) 6%

Moderate Portfolio

  • HDFC TOP 200 Fund (Large Cap Fund) 11%
  • Principal Large Cap Fund (Largecap Equity Fund) 10%
  • Reliance Vision Fund (Large Cap Fund) 10%
  • IDFC Imperial Equity Fund (Large Cap Fund) 10%
  • Reliance Regular Saving Fund (Stock Picker Fund) 10%
  • Birla Sun Life Front Line Equity Fund (Large Cap Fund) 9%
  • HDFC Prudence Fund (Balance Fund) 9%
  • ICICI Prudential Dynamic Plan (Dynamic Fund) 9%
  • Principal MIP Fund (15% Equity oriented) 10%
  • IDFC Savings Advantage Fund (Liquid Fund) 6%
  • Kotak Flexi Fund (Liquid Fund) 6%

Conservative Portfolio

  • ICICI Prudential Index Fund (Index Fund) 16%
  • HDFC Prudence Fund (Balance Fund) 16%
  • Reliance Regular Savings Fund - Balanced Option (Balance Fund) 16%
  • Principal Monthly Income Plan (MIP Fund) 16%
  • HDFC TOP 200 Fund (Large Cap Fund) 8%
  • Principal Large Cap Fund (Largecap Equity Fund) 8%
  • JM Arbitrage Advantage Fund (Arbitrage Fund) 16%
  • IDFC Savings Advantage Fund (Liquid Fund) 14%

Best SIP Fund For 10 Years

  • IDFC Premier Equity Fund (Stock Picker Fund)
  • Principal Emerging Bluechip Fund (Stock Picker Fund)
  • Sundram BNP Paribas Select Midcap Fund (Midcap Fund)
  • JM Emerging Leader Fund (Multicap Fund)
  • Reliance Regular Saving Scheme (Equity Stock Picker)
  • Biral Mid cap Fund (Mid cap Fund)
  • Fidility Special Situation Fund (Stock Picker)
  • DSP Gold Fund (Equity oriented Gold Sector Fund)