Capital market regulator Sebi’s Chairman U K Sinha has asked the people of Bihar to consider investments in the capital markets for better,long-term returns.
Investment in mutual funds and equity market is important for long-term interest,Sinha said at a seminar here.
He also said the centre has launched a number of pension schemes wherein investors can put in their money for safe and handsome returns over about 20 years after retirement.
The mutual fund sector has only 0.42 per cent share of Bihar’s investment at Rs 1,509 crore and only 24 offices,while the number of d-mat account holders in the state is quite low.
There is only one registered share broker,1,000 terminals of share market in the entire state and only two companies located in it listed on the bourses,Sinha said.
Sebi has framed rules for popularising investments in mutual funds in the small towns and was giving an opportunity to the non-income tax payers in the equity market.
It has also proposed steps for increasing financial literacy among the people to motivate them to invest in equity and venture capital.
With an aim to revive the mutual fund industry,last week Sebi announced a slew of financial and operational benefits and promised further long-term reforms,while asking the fund houses to reach out to investors in smaller cities.
Among the various steps approved at its board meeting here today,Sebi today allowed the fund houses full flexibility in using the amount charged to investors for various expenses and recommended to the central government to provide tax incentives to equity mutual fund investors.