SEBI fixes Jul-end as cut-off date for applying to set up SRO
Mumbai: After Board approval to set up a single self-regulatory organisation (SRO) for the mutual fund industry, market regulator SEBI Wednesday fixed July 31 as the cut-off date for applying for the same.
"The SEBI board has decided to have a single SRO. We have also decided to have a cut-off date, which is July 31 (for applying to set up an SRO)," SEBI Chairman U K Sinha told an MF summit organised by CII here.
He further said the players interested in applying for setting up SRO would have to do so within this specified date.
Yesterday, the SEBI Board had approved a proposal to set up a single SRO for all mutual fund distributors, which will help minimise complexities and duplications and also lower costs along with a better oversight by various regulatory authorities.
Meanwhile, the SEBI Chairman also said the fund houses are allowed to manage any pooled investment like pension money.
"Pension money is allowed to invest in the AMC industry. SEBI has allowed that AMCs can manage any pooled investments," Sinha said, adding not many AMCs are coming forward to manage funds for large group of employees and have not marketed this proposition to employees.
He also said the SEBI will extend every help if AMCs want to set up funds to manage these kind of capital.
Referring to various ponzi scehmes going bust in many parts of the country, Sinha said nobody knows what is the amount of money raised through such illegal schemes.
"This is a very sad state of affairs that so much money has been raised through unauthorised schemes. The data about chit funds is Rs 30,000 crore (raised by registered entities). But, the chit fund industry tells me that the actual size is several times bigger, which are being collected through unauthorised chit funds.
"But this is unauthorised or various other schemes, the fact is that huge amount of household savings is being captured," he said, adding the MF industry has to reach out to these investors to get that money.