Avoid 145;misselling146;: Bhave to MFs

The mutual funds industry should adopt self-regulation and safeguard against misselling of products to investors, market regulator Sebi said. 8220;I am sure the mutual funds industry will take sufficient steps of self-regulation and to see that Sebi does not have to step in,8221; Sebi8217;s chairman C B Bhave said. With the derivatives markets taking off, complaints are being heard from investors that derivative products have been offered without the complexity of these products being explained to them properly, he said. Selling of products without explaining the details, including the likely return, is referred as misselling. 8220;As India integrates more and more with the world, and with our markets getting more sophisticated, we will see more complex products for investment available,8221; he said, adding understanding the risks inherent in these products will become increasingly important.