Market regulator Sebi has reconstituted the mutual fund advisory committee by adding 11 new members to the panel. Sebi is also learnt to have ended the scope of the five-member Prashant Saran Committee, which introduced the 150 transactional charge (one-time) on new mutual fund investors in July this year.
Repeated requests from fund houses and distributors prompted Sebi to rejig the 14-member MF advisory committee (MFAC), constituted in 2008. Low representation of funds, unit trust trustees and distributors had been a talking point even when the Prashant Saran Committee was formed in March this year. "While MFAC was considered inefficient in its working, the recently-constituted Prashant Saran Committee was "not very proactive to fund industry needs," said a member on the newly-elected panel.
None of the old MFAC members, except AMFI chairman HN Sinor, Value Research MD Dhirendra Kumar and senior journalist Monika Halan, have been admitted to the new panel. Birla Sunlife Mutual Fund CEO A. . Sinor has been appointed chairman of the panel. The new panel, with a working a tenure for two years, will work on matters relating to regulation and development of MFs.
According to sources, the regulator is likely to have a relook at the commission structure of fund distributors. The new panel will meet in the first week of October to discuss ways to implement the 150 transactional charge on new fund investors.