Sebi puts plans to allow MFs to be sold via passporting on the back-burner

MFs have garnered record assets in the past year, with average monthly inflows of Rs 40-60 billion through systematic investment plans (SIPs)

The Securities and Exchange Board of India (Sebi) has put its plans to allow Indian mutual funds (MFs) to be sold through ‘passporting’ on the back-burner. Passporting would have allowed domestic schemes to be sold in Asian countries without the need for regulatory clearance in the host country. 

The regulator is worried about excessive inflows into MFs and fears that being part of such an agreement will bring in additional foreign money into Indian mutual fund schemes, making them more susceptible to sudden outflows, sources said. 

Sector officials have also lobbied the regulator to put off passporting for the time