SEBI Mandates Direct Mutual Fund Plans as Default Option Starting November 1
NEW DELHI: The Securities and Exchange Board of India will mandate direct mutual fund plans as the default option starting November 1, according to recent reports.
The market regulator aims to lower investment costs for everyday retail investors. Direct plans eliminate intermediary distributor commissions entirely.
This major shift ensures higher long-term returns for millions of mutual fund holders across India. Traditional regular plans currently route investments through brokers or financial advisors.
SEBI believes transparent pricing protects vulnerable investors from unnecessary agent fees. Industry experts view the policy change as a massive boost for digital adoption.
Furthermore, the regulatory body is reviewing existing Initial Public Offering frameworks. Authorities want to tighten compliance norms for Small and Medium Enterprises listing.
Recent market trends show excessive speculative activity in various SME platforms. SEBI intends to safeguard retail capital from high-risk vulnerabilities.
Strict listing criteria will soon curb fraudulent valuations and market manipulation. Stakeholders await the official circular detailing comprehensive implementation guidelines.
Source – The Economic Times
