Totally agree with you sir.Yes their is potential in this business. But till in rural areas people are not willing to keep trust on Mf due to illiteracy.Some dont familiar with cheque also. We all of us make association to express our views to SEBI.

I agree hundred percent with Brijesh. however, there are grey areas still exist in the MF system. Banks and NDs sell products and not incidental advice to clients and the products suited to their[Banks and NDs] own profitability. Also, the new trend emerging is Some Banks and NDs are slyly trying to poach IFA clients with consolidated NSDL/CDSL statements of their cleints. Moreover, as IFAs loose more ground with introduction of RIA , Banks and NDs have to float step-down subsidiary to enable Fee-based advice. It remains to be seen how these entities going to manage the show.

I TOTALY AGREE WITH YOU SIR,WE WILL FOLLOW U

Totally agree with mr dalmiya, we have to gather for this kind of one sided decision. Indian mutual market is not big if it is like america or if we have reach even half of it then sebi could do this kind of experiment. But only with 15lac cr industry in india it may create diverce effect

Certainly agree with you Mr. Dalmia! Here in northeast barring Guwahati and few major towns, mutual funds business havent grown substantially over the years. Of course theres a lot of potential but its a region where we are still trying to inculcate in people the habit of banking. Penetration can happen with ease of business. How do you promote mutual funds without educating and advising the people in such type of a market. RIAs are OK...but only RIAs can be advisors is not OK..at all!! Thanks.

All these hypothetical policies will Teach a lesson to regulators in coming time, let a correction come like 2000, 2008, 2011 that only open the eyes of these one sided policy makers when investor move out there money and none will rescue .. Let not afraid just do your karma, and the reward will surely big on the way..

Agree with Brijesh completely. He has hit the nail at the right spot.

Regulators are fully aware of the fact that the business of pure distribution is unviable; Even the Car Salesman has to advice his prospects. Otherwise why dint SEBI have the market feedback? The reason for SEBI doing such changes lies elsewhere. The reasons in my view are as follows: 1. Life Insurance is loosing business, hence govt. is not happy with such situation. Govt. & Life Ins companies want the MF distribution community to move to selling Life Insurance. For govt. the debt raising through Life Policies is the simplest way, hence they are contemplating to raise the agents commission till 50%.... 2. Large MF houses wants to wipe out small fund houses, that way they can have almost monopoly on the MF industry 3. Banks large part of revenue from 3rd party products, and they want the individual distributors to be out. And this will be very detrimental to the larger masses who are deprived of equity investment in their lives...

SEBI is infact either contradictory to its views or turning a blind eye to the fact that in National savings the contribution of equity MF is less than 5 percent,inspite of distributors as Mr Sinha himself admits. People dont know the difference in ULIP and MF investment. Still the regulator wants to create the atmosphere of mistrust in investor and advisor. And to cap it,distributor cannt advice or tell the difference to him. Investor wont pay the fees for forced and free advice. He will follow the advice of news channels,who change their stand every day and every channel having a different view. Take it for granted, no channel is going to tell them to Stay Invested. They have to create noise everyday. But people are used to freebies so they will take advice from channels and invest on line. What will be the role of IFA.

Regulation is Must for all segment but its also a responsiblity for regulator is to expand their work more and more make a rule to easy the work ..before expansion objective ..focus only to make a rule for on the name of transparency and etc. ..will destroy the objective of penetration to the end user... Thanks

I am Agree with view of Mr. Dalmia. Ground Label reality is totally different. which the Regulator should think. If Regulator wants to Grow MF in Tier II and Tier III City...it is major concern. Otherwise MF will not grow in Small Cities. Same Like Banking System. After 50-60 Years of Independence...Still Our PM has to call/initiate for People to Join the Banking System. Why the People or not joined the Banking system due to Opening Account and Operating Account is Still tough task in Semi Urban and Rural area....

Sir, I am surprised, a senior pro like you hold such views. From when has any change been very welcomed and successful. Please give one incidence. For every change which fundamentally alters the way business is done, there will be resistance. However over some time everyone will find a way of doing business profitably. I am a big fan of your writings, but humbly I disagree with this view. Simply because a wrong was allowed for long enough, is no reason for it to be allowed to perpetuity. This is my view...

Brijesh has rightly pointed out that this is not the right time to implement all this things. Our investors are not matured enough to pay fees to advisors. Mutual fund penetration is very low compared to west and mutual fund awareness is in pathetic condition in india. Only IFA can educate and convince the indian masses and bring into MF zone. Mr. SINHA Allow us function with peace of mind

Client aquisition and holding the client expensive affair. SEBI see the ground realities and encourage the IFAs it good for client Wealth Creation. We are under penetrated market. Sri Brijesh Dalmia views are future realties of the all IFAs.