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U K Sinha, chairman of Securities and Exchange Board of India (Sebi) has said that if any entity wants to be in mutual fund business it has to be serious. He made it a point that there is no space for non- serious players.
"Top AMCs are contributing 77% AUM. But only 10% of the AUM is coming from bottom 10 AMCs. This has not substantially changed in last 5 years. To me it gives an impression that we have got some non-serious players in the industry," said Sinha at CCI's MF Summit today.
"Why are we here?," he asked. If year after year the contribution remains at abysmal levels , there is a need for re-thinking, he added.
Sebi has set up a group for developing a long term policy for mutual funds. "I expect the group will submit its report in the next 2-3 months, Sinha said.
Sinha said it was worrisome to see a consistent fall in equity folios for 5 consecutive quarters.
During last one year India's MF industry has opened 52 branches in beyond top 15 cities. "Only 52," stressed Sinha adding that overall number of branches across the country is 1600 at a time when an insurance company is opening 300 branches in a single day.
He further cautioned that if non-serious players do not change their way of functioning Sebi may not hesitate in bringing disincentives too.
