Market regulator the Securities and Exchange Board of India (Sebi) has said that from tomorrow, mutual fund distributors and agents will need a National Institute of Securities Market (NISM) certificate to sell policies.
"With effect from June 1... Associated person, i.e. distributors, agents, or any person engaged in the sale of MF products, shall be required to have a valid certification from NISM," the Sebi said in a notification.
Experts said the move is intended to give quality service to investors and bring the unorganised segment under its loop so as to curb them from mis-selling products.
"Sebi wants to ensure that the customers receive quality service from investors. Sebi feels certified agents and distributors would provide investors with good suggestions," SMC Capitals Equity Head Jagannadham Thunuguntla said.
The notice added that if the said person possesses a valid certificate of the AMFI Mutual Fund (Advisors) Module before June 1, he would be exempted from the requirement of having an NISM certificate.
NISM is a public trust set up by SEBI as an autonomous body.
In order to increase investor interest in MFs, the market regulator had last year abolished entry load and asked fund houses not to deduct marketing and distribution charges from the investment made by customers.
To increase accountability on the part of fund houses, the market regulator had earlier this month asked AMCs to disclose the details of investor complaints on websites, as well as in annual reports.
Now all AMCs will have to put up the data for the bygone fiscal by June 30, 2010, and for each new fiscal within two month of the close of the fiscal year.
