He stressed that MF companies must look into gap on client communication and their interest should also include clients' protection. Bhave said, the Advisory Committee should be in place in a month's time. It would act as other advisory committees of SEBI on primary and secondary markets and other issues. It would have consultations with the industry, advisors and other experts to have a relook into the regulations on Mutual Fund taking into consideration the advances made by the industry thus far.
Bhave was highly critical over the manner, in which the Mutual Fund gave attention to the investors who would like to exit from the funds. He spoke about representatives of distributors, who switch jobs and the clients have no contacts to air their grievances. Calls to contact centres give no proper responses. He said though SEBI had been attending to individual complaints, there was need for the Industry to have a look into such issues.
He categorically rejected the demand of the Association of Mutual Funds in India Chairman A P Kurian's plea for SEBI looking into facilitating better growth for Mutual funds especially in the backdrop of Insurance Companies onslaught on them through the Unit Linked Insurance Policies (ULIP). He pointed out that SEBI was there to take care of the investors and not for the growth of Mutual Funds. Kurian had earlier stated how the ULIP was causing serious dent into the MFs business and sought SEBI's intervention into the issue.
Bhave also said that SEBI would shortly hold a workshop of trustees of Mutual Funds and hear their views on the operation of MFs and also give a forum for them to express the shortcomings or otherwise.
He also advised the Mutual Funds to come out with a platform to enable an investor from a single point get to know about investments he had made in various funds. This should be like the depository had has been created for equity shares, he added.