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Thursday, 24 June 2010 05:32 |
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Sebi will abide by Ulip law, says Bhave
fe Bureau
Posted: Thursday, Jun 24, 2010 at 0006 hrs IST
Mumbai: CB Bhave, chairman, Securities and Exchange Board of India (Sebi) said on Wednesday that with the laws governing unit-linked insurance products (Ulips) having changed, the market regulator would abide by them. “We all operate under the laws as they exist. The law has changed now and so now, we will operate under a new law,” Bhave said at a press conference in Mumbai. Bhave also asked the mutual fund industry to get its incentive structure right to benefit investors and the industry in the long term.
Addressing the inaugural session of the CII Mutual Fund Summit 2010, Bhave observed that the industry was attributing low sales to the lack of incentives for distributors, ever since entry loads on MFs were banned.
“There seems to be some misunderstanding. We never said distributors should work for free. All we said was that investors should decide how much they want to pay for advice. Let them negotiate,” the Sebi chief said. In August last year, Sebi had banned MF entry loads. The industry needed to get its incentive structure right so that it could attract investors, Bhave observed.
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