MF sale on e-commerce sites likely in a month: U K Sinha

Sebi has set up a committee under Infosys co-founder Nandan Nilekani to deliberate ways in which electronic means can be used better for sale of mutual funds

Sebi chairman U K Sinha today said sale of mutual funds on e-commerce platforms could become effective in a month, a move which will help deepen the respective market.

The markets regulator has set up a committee under Infosys co-founder Nandan Nilekani to deliberate ways in which electronic means can be used better for sale of mutual funds (MF).

The committee is also working to make sale of mutual funds possible on e-commerce platforms, the Sebi chairman said.

"My guess is that in the next one month, this will be done (permitting sale of mutual funds on e-commerce websites)," he said while speaking to media on the sidelines of the launch of Bandhan Bank's 600th branch here.

According to Sinha, mutual fund growth in the country has been "very good" and that an ever-growing number of consumers flock to e-commerce websites for shopping.

"However, electronic means are not used as well as they should have been and the growth is not happening using such means. We have some experts deliberating on how the electronic means can be used better," Sinha said.

Targeting the young and educated people with high salaries and disposable income, Sinha said, the move would help them invest easily.

"If these people are doing e-shopping, and they know financial markets, then they should also invest in MFs and that is the direction in which we are thinking," the Sebi chairman said.

On listing of start-ups, Sinha said it will take its own time.

"Important thing to note is that the regulations are in place. If there is a company under pressure, there is alternative before the company to raise(funds)," Sinha noted, adding that the markets regulator was in dialogue with start-ups related to the issue.