SEBI cracks whip on online mutual fund distributors

[rajeshn2007]

SEBI cracks whip on online mutual fund distributors.

Asset management companies (AMCs) will not be allowed to open any new accounts if they do not possess all investor-related documents with them. A majority of these accounts mainly belonged to online distributors who were not ready to share investor details with AMCs.

"Online distributors were not disclosing the customers' identity and were merely saying that these transactions were happening at their level. They said they would do business based on power of attorney (PoA) but the Securities and Exchange Board of India (SEBI) did not agree.

http://moneylife.in/article/72/8211.html

 

[vishal412]

These are very well thought out directives issued by SEBI, which are in the long-term interest of investors, as this will instill more discipline amongst mutual fund houses and also enable investors to get efficient service.