Sebi tightens, IRDAI loosens: the strange story of India’s retail market2 min read . Updated: 19 Mar 2016, 01:31 AM IST
Investment-linked life insurance plans and mutual funds compete for the same investor funds. How then can the government allow such different governance and consumer protection standards?
New Delhi: The capital market regulator’s Friday move tightening disclosure norms took the market by surprise. The circular dated 18 March 2016 (you can see it here) says that investors will now know what it costs them in terms of commission paid to the agents who sell them the funds. Remember, mutual funds (MFs) are zero-load—which means that your ₹ 1,000 goes to work fully—and has an overall charge that averages 2% a year. Commissions to agents are paid from this annual charge.
Login to enjoy exclusive benefits!
- Unlocked premium articles
- Personalized news
- Market Watchlist
- Insightful Newsletters & more