Sebi has made a statement that they are planning to come down heavily on Mis-selling of mutual funds.
I am really impressed.
Just wondering how.
Reminds me of the ‘Retail Real Estate Mutual Fund’. The Guidelines were announced long ago….still waiting for the first launch. I remember seeing the guidelines and saying ‘how will it work’ …
daily NAV was an administrative problem. Much worse was in a market as murky as the Real Estate, how will you ensure that the transactions are clean?
Similarly, happy to see SEBI’s attitude towards mis selling, but hey:
a. What is mis-selling: this has to be defined, and that looks difficult. Well impossible.
b. If I go to an old man and say “Sir..here is a Monthly Income Plan of Hdfc – and see it says ‘Long Term’ – so sir it is a risk free product…please buy it. Tell me who is helping mis-selling? The agent or the INDUSTRY which is allowed to name a product as a Monthly Income Plan….
To me this sounds nice and as usual utopian. The issue is easy to see if you are a regulator and have a fantastic telescope…with fantastic power.
However they have to realise that they are looking at the moon….but the problem is for the autorickshaw driver and his passengers.
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