Sinha meets MF chiefs, discusses ways to deepen MF reach

Sebi Chairman U K Sinha met heads of select fund houses here today to get suggestions on how to increase mutual fund penetration.
Chiefs of 16 fund houses attended the pre-lunch closed-door meeting. Currently, there are 44 such players in the country.
The chairman and chief executive of the Association of Mutual Funds in India (AMFI) also attended the meet.
The MF industry has a penetration of just 7 per cent. Sebi wants to double it in the next 3-4 years.
Meanwhile, Sebi is learnt to have asked MFs to transfer 50 per cent of their unutilised funds for investor education and awareness initiatives to the industry body Amfi from the next month.

The chief of a fund house told PTI, "We are yet to receive a final guideline from Sebi in this connection."
The decision came after Sebi officials made surprise on-site visits and found that efforts towards investor education scheme are lacking in intent and execution.