The capital market regulator, Securities and Exchange Board of India (Sebi), will soon introduce product labelling for mutual funds to make investors aware of any risks associated with it.
“Product labelling is an important investor education agenda for Sebi. The scheme profile will be given very shortly and finally it will be with colour codes,” S V Muralidhar Rao, executive director of Sebi, said on Saturday.
Rao said another important agenda on the Sebi scheme of things was to spell out a long-term policy on mutual funds. Sebi will shortly bring out a long-term policy on mutual funds. That will be basically a taxation issue. The board of Sebi had approved idea of a long-term policy last year. “We are going to deliberate it at the mutual fund advisory committee,” Rao told reporters on the sidelines of a seminar here.