Mutual funds keep fingers crossed on rules for merger of schemes

Sebi gave more than adequate time to industry to merge schemes; sector could not be up to the mark

The mutual fund industry is in a wait-and-watch mode over regulations regarding merger of schemes. 

The mutual fund advisory panel appointed by the Securities and Exchange Board of India (Sebi) is due to meet on Friday amid expectations that fund houses may not be allowed to continue with multiple schemes in the same category.

There are 2,041 schemes offered by 40 mutual funds, averaging 50 per fund house. Sebi feels these are too many for investors to understand, differentiate and choose from.

“Sebi has been suggesting this for years now, but the industry did not pay heed. Now we have to face the