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Market regulator Sebi may adopt a stricter approach to non-serious mutual funds, a PwC report said today.
"Going forward, the Sebi could adopt a more stricter approach towards 'non-serious' asset managers," PwC India leader for asset management Gautam Mehra said.
Notably, an advisory committee formed to review the net worth requirement for AMCs recently suggested an upward revision in the minimum net-worth required for the mutual fund companies.
About the performance of mutual fund industry in the first three quarters of 2013, the report said growth has been sluggish.
"In fact, notably, during the year, no new licences were issued, there were no M&A activities and no fresh foreign investment flowed into the sector," it noted.
The report also pointed out that debt schemes continue to be the flavour of the season but noted that due to lack of adequate tax incentives, pension products are yet to take-off.
"While mutual fund AMCs have shown interest in tapping the pension products market, in the absence of adequate tax incentives, this is yet to take-off," it said adding that the proposed REITs (real estate investment trusts) could provide an alternative investment avenue.
As per the report, changes in tax laws with regard to investment in securitisation trusts by MFs have failed to attract investments by mutual funds in securitisation trusts.
"The industry continues to litigate past tax issues on securitisation trusts," it said.
Terming the performance of MF industry as a reflection of domestic economy, the report noted that element of 'uncertainty' could prevail for the next quarter or so.
