SEBI working on strategies to enhance mutual funds growth

Chennai: Securities and Exchange Board of India (SEBI) is consulting various stakeholders and agencies on how to enhance mutual funds in the country as the growth of mutual funds is not up to its expectations, according to SEBI chairman UK Sinha said. Addressing reporters here on Monday, he said SEBI is concerned over the growth of mutual funds. “During 2011-12 the net inflow to the mutual fund industry has increased by around Rs.700 crore to Rs.14,200 crore. However the number of portfolios went down in 2011-12,” he added. He also said that as per data from various parts of the world, there has been a drop in inflows to mutual fund not only in India but across the globe. He said there are 181 companies which are not complaint with the SEBI norms on the public shareholding norms. By June 2013 private sector listed companies and August 2013 public sector companies that are listed have to comply with SEBI norms. If they fail they will have to face the consequences,” he added. As per SEBI norms listed private companies should have a minimum of 25 per cent public shareholding and in the case of public sector listed companies the limit is 10 per cent. He also highlighted the effectiveness of complaint redressal system launched in June last year. “We have received 35,000 complaints which included companies not issuing dividends on time or issuing less dividends. “Two-thirds of the complaint has been resolved in less than 30 days and the rest will be sorted out soon,” he added.