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The Hindu
21 hours ago
- Business
- The Hindu
Plans to make mutual fund rules more investor and industry friendly: SEBI official
The Securities and Exchange Board of India (SEBI) is undertaking a comprehensive review of mutual fund regulations to make them more investor-centric and industry-friendly, a senior official said on Saturday (June 21, 2025). "We are reviewing the entire mutual fund regulatory framework to enhance ease of doing business for all stakeholders, including the regulator," SEBI executive director Manoj Kumar said at the 17th Mutual Fund Summit organised by the Indian Chamber of Commerce (ICC) here. Existing regulations governing the sector are among the lengthiest and require simplification to keep pace with evolving investor needs and industry innovations, stakeholders said. "The process has started and soon we will come out with draft regulations for feedback and consultation process before it is finalised," Kumar said without giving any timeline for the rollout of the new rules. Kumar outlined the regulator's strategic roadmap to strengthen India's securities market, with mutual funds positioned as a critical pillar in fostering inclusive financial growth and investor protection. A consultation paper on regulations which governs advisory functions in mutual funds is also in the pipeline. Addressing the event, Kumar said India has undergone major market transformations under SEBI's stewardship. These include the shift to an electronic trading ecosystem in 1998, followed by achieving 100 per cent dematerialisation of shares, making India the only jurisdiction globally to do so. "The third transformation is unfolding now through the mutual fund revolution," he said, calling it a cornerstone of SEBI's "optimum regulation" approach, one that seeks balance among the interests of the regulator, the industry, and investors. While India's mutual fund industry has crossed Rs 72 lakh-crore in AUM and monthly SIP contributions have touched Rs 28,000 crore, the investor base remains limited to just five crore in a population of 140 crore, Kumar pointed out. SEBI is also actively reviewing scheme categorisation norms to make them more intuitive for investors, while ensuring all offerings remain "true to label" to prevent mis-selling. To offer wider choice to investors, SEBI has approved a new product category, referred to as SIF, aimed at investors with ticket sizes between Rs 10 lakh and Rs 50 lakh. Mutual funds were selected to manage these products given their established governance and handling of retail flows. Parallelly, SEBI has opened faster registration windows for Portfolio Management Services (PMS) and Alternative Investment Funds (AIF) with similar offerings. Addressing industry concerns over stress test disclosures for mid- and small-cap funds, Kumar reaffirmed SEBI's disclosure-based regulatory model, stressing that informed investors are central to market resilience. While he acknowledged that some disclosure requirements may seem burdensome, he assured stakeholders that SEBI remains open to feedback and streamlining processes. He urged the industry to avoid situations that warrant regulatory intervention, saying, "Our goal is not to disrupt but to allow business to thrive." Highlighting the untapped potential in eastern India, Kumar said SEBI views West Bengal and the Northeast as strategic regions for mutual fund expansion, underscoring the need for targeted penetration efforts. Echoing this vision, AMFI chief executive V N Chalasani said India is transitioning from financial inclusion to financial well-being, where saving smartly and investing wisely will enable sustainable wealth creation. He cited the exponential growth of mutual funds post-2017, following SEBI's investor education mandate, which helped expand the investor base and improve financial awareness. However, Chalasani pointed out that India's mutual fund AUM still forms only about 20 per cent of GDP, compared to a global average of 65 per cent. He stressed the need for deeper financial literacy, especially in Tier 3 and 4 cities, where AMFI is focusing through school and university programmes, distributor expansion via India Post, and new product innovations aimed at mid-income investors. "Every Indian can evolve from a saver to an investor and ultimately a wealth creator," he said, calling for sustained collaboration between regulators, industry, educators and investors to build an empowered, financially resilient India.
Time of India
a day ago
- Business
- Time of India
Plans to make mutual fund rules more investor and industry friendly: Sebi official
Live Events The Securities and Exchange Board of India (SEBI) is undertaking a comprehensive review of mutual fund regulations to make them more investor-centric and industry-friendly, a senior official said on Saturday."We are reviewing the entire mutual fund regulatory framework to enhance ease of doing business for all stakeholders, including the regulator," SEBI executive director Manoj Kumar said at the 17th Mutual Fund Summit organised by the Indian Chamber of Commerce (ICC) regulations governing the sector are among the lengthiest and require simplification to keep pace with evolving investor needs and industry innovations, stakeholders said."The process has started and soon we will come out with draft regulations for feedback and consultation process before it is finalised," Kumar said without giving any timeline for the rollout of the new outlined the regulator's strategic roadmap to strengthen India's securities market, with mutual funds positioned as a critical pillar in fostering inclusive financial growth and investor protection.A consultation paper on regulations which governs advisory functions in mutual funds is also in the the event, Kumar said India has undergone major market transformations under SEBI's include the shift to an electronic trading ecosystem in 1998, followed by achieving 100 per cent dematerialisation of shares, making India the only jurisdiction globally to do so."The third transformation is unfolding now through the mutual fund revolution," he said, calling it a cornerstone of SEBI's "optimum regulation" approach, one that seeks balance among the interests of the regulator, the industry, and India's mutual fund industry has crossed Rs 72 lakh-crore in AUM and monthly SIP contributions have touched Rs 28,000 crore, the investor base remains limited to just five crore in a population of 140 crore, Kumar pointed is also actively reviewing scheme categorisation norms to make them more intuitive for investors, while ensuring all offerings remain "true to label" to prevent offer wider choice to investors, SEBI has approved a new product category, referred to as SIF, aimed at investors with ticket sizes between Rs 10 lakh and Rs 50 funds were selected to manage these products given their established governance and handling of retail SEBI has opened faster registration windows for Portfolio Management Services (PMS) and Alternative Investment Funds (AIF) with similar industry concerns over stress test disclosures for mid- and small-cap funds, Kumar reaffirmed SEBI's disclosure-based regulatory model, stressing that informed investors are central to market he acknowledged that some disclosure requirements may seem burdensome, he assured stakeholders that SEBI remains open to feedback and streamlining urged the industry to avoid situations that warrant regulatory intervention, saying, "Our goal is not to disrupt but to allow business to thrive."Highlighting the untapped potential in eastern India, Kumar said SEBI views West Bengal and the Northeast as strategic regions for mutual fund expansion, underscoring the need for targeted penetration this vision, AMFI chief executive V N Chalasani said India is transitioning from financial inclusion to financial well-being, where saving smartly and investing wisely will enable sustainable wealth cited the exponential growth of mutual funds post-2017, following SEBI's investor education mandate, which helped expand the investor base and improve financial Chalasani pointed out that India's mutual fund AUM still forms only about 20 per cent of GDP, compared to a global average of 65 per stressed the need for deeper financial literacy, especially in Tier 3 and 4 cities, where AMFI is focusing through school and university programmes, distributor expansion via India Post, and new product innovations aimed at mid-income investors."Every Indian can evolve from a saver to an investor and ultimately a wealth creator," he said, calling for sustained collaboration between regulators, industry, educators and investors to build an empowered, financially resilient India. PTI
Time of India
a day ago
- Business
- Time of India
Mutual fund regulation overhaul: Sebi eyes investor focus, industry ease; new rules, categories on the way
Sebi is working on a comprehensive review of mutual fund regulations to make them more investor-centric and industry-friendly, a senior official said on Saturday. 'We are reviewing the entire mutual fund regulatory framework to enhance ease of doing business for all stakeholders, including the regulator,' said Manoj Kumar, executive director at Sebi, at the 17th Mutual Fund Summit hosted by the Indian Chamber of Commerce, reported PTI. He said a draft of the new regulations will be released for public feedback before being finalised, although no timeline was given. The remarks come amid calls from stakeholders for simplification of existing norms, which are among the lengthiest in the financial sector. According to Kumar, the regulatory overhaul is part of a broader roadmap aimed at deepening India's securities market, with mutual funds playing a 'critical pillar' in promoting inclusive financial growth. Kumar said the reforms are in line with Sebi's 'optimum regulation' approach, which balances the interests of regulators, investors, and the industry. India's mutual fund industry has crossed Rs 72 lakh crore in assets under management (AUM), and monthly SIP contributions have touched Rs 28,000 crore. However, only about five crore people invest in mutual funds in a country of 140 crore, he pointed out. Sebi is also reviewing scheme categorisation rules to ensure funds remain 'true to label' and are easier for investors to understand, helping prevent mis-selling. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Buy Brass Laxmi Ji Idol For Wealth, Peace & Happiness Luxeartisanship Shop Now Undo A new product category, Strategic Investment Fund (SIF), aimed at investors with ticket sizes between Rs 10 lakh and Rs 50 lakh, has been approved and will be managed by mutual funds. Kumar said Sebi is also simplifying processes for Portfolio Management Services (PMS) and Alternative Investment Funds (AIFs), which will offer similar investor options. Addressing concerns about stress-test disclosures for mid- and small-cap funds, Kumar reiterated Sebi's disclosure-based regulatory approach. 'Informed investors are central to market resilience,' he said, adding that Sebi is open to streamlining compliance. 'Our goal is not to disrupt but to allow business to thrive,' Kumar said. On regional expansion, Kumar emphasised the potential in eastern India and the Northeast, calling them strategic regions for deepening mutual fund penetration. AMFI CEO V N Chalasani, also speaking at the summit, said India is evolving from financial inclusion to financial well-being. However, mutual fund AUM still makes up only 20% of India's GDP, compared to a global average of 65%, he said. He called for greater financial literacy in Tier 3 and Tier 4 towns and cited new AMFI initiatives including school programmes, India Post tie-ups, and product innovation to reach mid-income investors. 'Every Indian can evolve from a saver to an investor and ultimately a wealth creator,' Chalasani said. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Time of India
10-06-2025
- Business
- Time of India
ITI Mutual Fund launches new brand identity ‘Diviniti Specialized Investment Fund'
ITI Asset Management has announced the launch of Diviniti SIF, a new platform focused on the Specialized Investment Fund (SIF) business. Diviniti SIF will offer innovative investment solutions across equity, hybrid, and fixed income categories, tailored to meet the evolving preferences of investors. 'With the launch of Diviniti SIF, ITI AMC is making a strategic foray into the rapidly evolving SIF space. We see SIFs as the next frontier in investment solutions—a dynamic middle ground between traditional mutual funds and PMS/AIFs—offering the innovation and flexibility needed to address changing investor needs. As investor expectations rise, SIFs have the potential to redefine how portfolios are constructed and managed,' said Jatinder Pal Singh , CEO, ITI Mutual Fund . Also Read | Nifty Bank hits 57,000. Is it time for mutual fund investors to bet on banking funds? Play Video Pause Skip Backward Skip Forward Unmute Current Time 0:00 / Duration 0:00 Loaded : 0% 0:00 Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 1x Playback Rate Chapters Chapters Descriptions descriptions off , selected Captions captions settings , opens captions settings dialog captions off , selected Audio Track default , selected Picture-in-Picture Fullscreen This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Text Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Transparent Caption Area Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Drop shadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Best MF to invest Looking for the best mutual funds to invest? Here are our recommendations. View Details » by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Play War Thunder now for free War Thunder Play Now Undo He added, 'The name 'Diviniti SIF' is inspired by two meaningful concepts: 'Divine'—symbolizing higher purpose, integrity, and universal wisdom, and 'Niti'—a Hindi word that stands for ethical policy, moral governance, and strategic principles.' 'Together, 'Diviniti' captures our commitment to purpose-driven, responsible investing with long-term impact. It reflects our vision of creating a Specialized Investment Fund that is not only financially robust but also ethically sound and socially responsible,' Singh further stated. Live Events As of May 31, 2025, the fund house's assets under management (AUM) stood at Rs 10,242.69 crore. Of this, equity AUM accounted for Rs 9,456.17 crore, while hybrid and debt schemes contributed Rs 434.01 crore and Rs 352.50 crore, respectively, according to a press release by the fund house. The AUM is geographically well-diversified, with the top five cities accounting for 43.82% of the total. The next 10 cities comprise 21.22%, followed by the next 20 cities at 16.53%, the next 75 cities at 13.42%, and other locations contributing 5.01%, the release added. Also Read | Mirae Asset Mutual Fund launches new brand identity 'Platinum SIF' Last week, Mirae Asset Mutual Fund unveiled its new brand identity , 'Platinum SIF,' marking a strategic shift in its approach to product innovation. The initiative aims to create space for differentiated strategies within the mutual fund framework.
Time of India
07-06-2025
- Business
- Time of India
Explained: How is Specialised Investment Fund different from mutual funds, PMS, and AIF
Tired of too many ads? Remove Ads What is a Specialised Investment Fund (SIF)? Mutual Funds (MFs) Tired of too many ads? Remove Ads Portfolio Management Services (PMS) Alternative Investment Funds (AIFs) Structure and Regulation Tired of too many ads? Remove Ads Investment Flexibility and Strategy Liquidity and Tenure Who can set up a SIF? With a wide range of investment options today, it's crucial to understand the key differences between vehicles like Specialised Investment Funds (SIFs), Alternative Investment Funds (AIFs), Portfolio Management Services PMS ), and mutual funds—each tailored to distinct investor needs, risk appetites, and return market regulator Sebi has introduced a Specialised Investment Fund (SIF) framework to bridge the gap between mutual funds (MFs) and portfolio management services (PMS), and it aims to provide sophisticated investors with more flexible investment opportunities while ensuring regulatory funds pool money from multiple investors to invest in stocks, bonds, or other securities. They are highly regulated, offer diversification, and are accessible to a wide range of investors, making them one of the most popular investment vehicles. MFs are suitable for those looking for lower risk and ease of offers customised portfolio management to wealthy investors, with a minimum ticket size of Rs 50 lakh. It provides personalised attention, allowing investors to tailor their portfolio based on risk appetite and goals. While providing more control than mutual funds, PMS often carries higher fees and are investment funds pooled privately and involve investments in real estate, hedge funds, private equity, etc. They are open to sophisticated investors with a minimum entry limit of Rs 1 crore. AIFs come in three categories—high-risk, moderate-risk, and lower-risk funds—and are less regulated compared to mutual mutual funds that pool investor money into diversified portfolios, or PMS that provides tailored portfolio management, SIF is a newly introduced investment avenue by the regulator, offering a unique structure and strategy for sophisticated funds in India are regulated by SEBI and follow strict norms regarding transparency, liquidity, diversification, and suitability for retail investors. PMS offers customised portfolio management to wealthy investors where portfolios are managed on behalf of individual clients with a minimum investment threshold currently Rs 50 are pooled investment vehicles for sophisticated investors and are categorised into three types—high-risk, moderate-risk, and lower-risk funds. They are meant for high-net-worth individuals (HNIs) and institutional investors looking to participate in less-regulated, high-risk minimum amount to be invested in an SIF will be Rs 10 lakh per investor. The fund house can offer a SIP and SWP but it must comply with the minimum threshold funds follow standardised asset allocation models and are limited to listed instruments in most cases. PMS offers more customisation, with fund managers directly managing portfolios tailored to the client's profile. AIFs allow flexibility in investing in unlisted securities, structured debt, and real estate, depending on the regulator allows SIFs to offer 3 categories of investment strategies: they are equity-oriented strategies, debt-oriented strategies, and the third is a hybrid category. The current framework allows only one strategy per category per funds provide high liquidity with daily NAVs and redemption options. PMS products are also relatively liquid, though with more constraints compared to mutual funds. AIFs, depending on the strategy, may have multi-year lock-ins and limited exit SIF can be open-ended, closed-ended, or interval-based. The redemption process may include a notice period of up to 15 working days, allowing fund managers to manage liquidity are two routes to establish an SIF. As per the first rule, a fund house must be in operation for a minimum of 3 years with an AAUM of Rs 10,000 crore in the preceding 3 years. The fund house must also have an additional fund manager and must have at least 3 years of experience managing AUM of Rs 500 crore.: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)
