The India mutual fund sector now has attention from the disinvestors. Reports say that the SEBI is working on a draft circular aimed at adjusting some practices and simplifying the large variety of mutual fund schemes to reduce misleading selling tactics. This action is expected to SEBI is to control the rampant cases of overlapping schemes and fund type categories. This makes it difficult for investors to understand. The regulator hopes to make it more diabled for people to select investment products that are in reality suitable. Moreover, the circular will also focus on issues of mis-selling whereby recommending a certain fund and the buyer or investor not comprehending fully the pros and cons associated with the investment. Hencforth, the new proposed regulations are anticipated to compel AMCs to further refine the structure of their ufferings by creating additional and more precise categories within the funds. Also, SEBI is likely to set higher standards for the sale of mutual funds as direction. These are likely to focus on proper sales allowance aimed at enforcement of proper focus on fund advertising and selling incentives that fuel fund pushing by sleazy dealers.This initiative is a notable advancement in enhancing mutual fund market efficiency and investing in the protection of investors in India. Both investors and industry stakeholders are eagerly anticipating the publication of the draft circular and its impact on subsequent fund offerings and the sales practices that will be implemented.
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