Sebi proposals to make decision-making easier for mutual fund industry

Clear-cut definition of mutual fund schemes will help investors significantly

The Securities and Exchange Board India (Sebi) is likely to usher another round of far-reaching reforms for the Rs 20 trillion mutual fund industry soon. Senior officials of the market regulator have given indications that the thrust of these will be on reducing the number of schemes available to investors in each category and introducing clearer definitions, so that investors find it easy to choose the right schemes for themselves. 

More schemes may be merged: Currently, around 2,000 schemes are available to investors. Many fund houses have multiple schemes in the same category, not so different from one another. In recent