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You are here: Home / Sebi should allow bundling of MF with loans, other financial products: Industry body

Sebi should allow bundling of MF with loans, other financial products: Industry body

Sebi should allow bundling of mutual fund schemes with other financial products like loans as it can help in creating financial discipline in low income households, an industry body has suggested to the markets regulator. Bundling, in market parlance, is a marketing method that comprises firms selling several products as a single combined unit mostly for a lower price than they would charge customers to purchase each item separately. “Mutual fund products mainly through systematic investment plans (SIP) route should be available to investors along with other financial products like insurance and loans. This will help benefit all the parties concerned and create financial discipline in low income households,” FIA Global CEO Seema Prem said. Prem, who met officials of the Securities and Exchange Board of India (Sebi) a couple of months ago, has suggested this to the markets watchdog. In addition, the fintech company has suggested that the regulator should explore setting up a separate mutual funds channel structure for distribution of mutual fund schemes in underserved areas akin to banking correspondent industry defined by RBI in 2006 for deepening penetration of bank accounts. “A mutual funds correspondence channel riding on the existing bank mitra network will ensure rapid… Read full this story

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Sebi should allow bundling of MF with loans, other financial products: Industry body have 297 words, post on economictimes.indiatimes.com at February 20, 2020. This is cached page on wBird. If you want remove this page, please contact us.

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