Sebi wants AMCs to launch products to tap pension money

Market regulator Securities and Exchange Board of India (Sebi) today said fund houses should launch pension products, so that retirement money can be brought into the capital market.

Noting that retirement and pension money is not coming to the market, Sebi Chairman UK Sinha wondered why asset management companies (AMCs) are not launching funds aimed at attracting pension money.

"Retirement and pension money is not coming into the market. It is legally possible that retirement money can be invested in the markets ... Why are AMCs not able to launch pension funds?" Sinha said at India Investment Conference here.

"We are passing through very difficult times. Margins and volumes and flow of fresh money are coming down. What you do in such a situation? We need to start taking measures," Sinha said, adding that level of participation in the markets by households is very low.

In future, Sinha said, Sebi will be regulating alternative investments. "Currently we are looking at regulations on distributors and investor advisers."

About 50% of mutual fund business is done through distributors who are not regulated at all, he said.

On the proposed new IPO norms, Sinha said, "We are looking at a review of the entire IPO process, as to who would participate, and in what manner and how to reduce the timelines."

Replying to query on insider trading norms, Sinha said, "We will take strict action against market manipulators."