Sebi today said the government and the regulator have done their bit to help the troubled mutual funds and now it is for the industry to take the reform measures forward.
“For the time-being, our task is over and its time for the industry to respond…we recently came up with new set of guidelines on MFs in our efforts to balance the need for attracting investment and help the industry,” Sebi Chairman UK Sinha told a capital markets summit organised by Ficci.
“The industry has to go beyond top 15 cities and if you do so, then you will get good and sustained business,” he added. On the Sahara issue, Sinha refused to take questions saying the matter is sub-judice and Sebi will follow directions of the Supreme Court in letter and spirit.
Last month, the Sahara Group challenged a Supreme Court order which had asked it to refund Rs 24,000 crore to around three crore investors, to a larger bench.
The case pertains to a Sebi order last year in which it had asked the Lucknow-based company to refund the money it had collected from investors through optionally fully convertible debentures.
When asked about developing the secondary market, Sinha said the main concern of Sebi is on risk management. “The regulator has come up with some set of guidelines on algo and high frequency trades and many countries have taken it as an ideal norm,” he said.
On the almost dried up primary markets, he said there is a need to raise awareness about market in non-traditional market to enhance the reach. Notably, due to credit crunch there has not been a single major IPO this fiscal so far. About the poor response to the recently announced offer for sale (OFS) norms, he said only two-three companies have taken benefit of these norms.