Sebi wants MFs to launch pension products

Move would attract retirement money into the capital market: SEBI Chairman

Market regulator Sebi today said mutual funds can come out with pension schemes and it is in touch with finance ministry to sort out the taxation issues.

"We are in touch with tax authorities and have sought similar treatment with the pension products (for mutual fund schemes)," SEBI Chairman U K Sinha told reporters here.

The mutual fund houses, he added, can come out with pension products to attract retirement money into the capital market.

The current provisions of the Income Tax Act makes pension products of insurance companies eligible for tax deduction benefits. However, no such benefits are available for mutual fund schemes.

Industry experts said that the Securities and Exchange Board of India (SEBI) would have to modify regulations to enable the mutual fund houses to launch of pension schemes.