This title has nothing to do with the body, let me first make that confession. I have been going around the country asking IFA why they are not doing a TOP UP sip instead of a simple sip. I have been getting various answers, but the most significant one is that the big execution platforms – NSE, Mfu, and BSE do not allow it. So it was fairly obvious that I asked Mfu why they could not execute such a simple thing. Then the saga unfolded. Each fund house has a different concept of top up.
How much can be topped up, will you allow a pause, can it be paused for 3 months or 5 months, …etc. etc.
I was just wondering how difficult it must be for an IFA when he is dealing with 20 mutual funds. I do not see any reason why the industry can’t sit together and iron out such issues. From how the form is designed, to what can be done online, to the format of the forms for change of name, address,…etc. Then there are other inconsistencies too. In some fund houses to change the email id a new kyc has to be done. In some fund houses the ‘old’ email id never goes away.
I am sure that with sane and soft people like John Mathews of Hdfc Mutual fund creating committees to standardize operations and forms should be a priority. Sebi should be looking at these things instead of legislating how an IAP should be held. Ha IAP, I could do a book on what happens there.
Sebi should make good, tough, and sensible rules and IMPLEMENT them properly. When the implementation is done badly, people get polarized – those who implement and those who do not. Those who do not get away for a long time – and this could lead to frustration for those who do. Wake up SEBI. Wake up AMFI.
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