That mutual fund distributors must be regulated is a foregone conclusion. This newspaper has been reporting, analysing, commenting and arguing for the need to regulate this sector of the huge and growing financial services industry for a long time. It included a series of reports, last July, on how mutual fund agents were getting investors to needlessly churn their money. Although it has taken almost a year for SEBI to react, last month it ended this dirty game by changing the rules to stop amortisation of new fund offer (NFO) expenses in open-ended schemes. But that’s just one solved problem; several others remain.
Opinion in The Indian Express, May 12, 2006