Sebi proposal to split roles in mutual fund industry leaves leaders worried

Sebi put out a consultation paper on Tuesday with the new proposals and sought comments from market participants by January 23

The Securities and Exchange Board of India’s (Sebi’s) renewed push to split the role of an investment adviser and distributor is causing a lot of heartburn in the Rs 22 trillion mutual fund industry.  

 
The industry, which has been riding high due to robust inflows of Rs 50 billion a month from the systematic investment plan route could suddenly find itself in a situation when one of the prime contributors to the assets under management, banks, will be completely out of action. “If the proposals are implemented, around 40 per cent of inflows will be impacted as wealth management