This committee would be on the same lines as those already existing for primary and secondary markets, he said. "We have advisory committees on secondary as well as primary markets, but no advisory committee on mutual funds. We will get advice from participants and investors about the issues bothering them and also about the policy framework required," Bhave said.
The committee would look into both the short-term as well as long-term issues which needed to be addressed. He said that the idea behind this committee was that Sebi should never assume that it had the entire knowledge within itself. "We should have the ability to consult industry representatives, intermediaries and investors on such matters," he said.
The mutual funds advisory committee would have the same composition as its primary and secondary market advisory committees except that it would focus on mutual funds, he added. "I think in about a month's time we will announce the setting up of the committee," Bhave said. He advocated the concept of depositories for mutual funds. He said that data of all shareholders irrespective of their holding of shares in one company or other, resided in one place is called a depository. Such a platform should also exist for mutual funds, he added.
