The Securities and Exchange Board of India (Sebi) on Wednesday hinted that minimum capital requirement for the mutual fund industry may be raised in order to have only serious players in the industry.
Pointing out that 77 per cent of the industrys assets under management (AUM) come from 10 asset management companies (AMCs) and the bottom 10 AMCs contribute only 1 per cent of the AUM,Sinha raised a question mark on the seriousness of such players. It means we have some non-serious players, said the Sebi chief.
The regulator has set up a group for developing a long-term mutual fund policy which will also look into the issue and is expected to come out with its report over the next 2-3 months. Hinting that the minimum capital for the mutual fund players could be raised (from current capital requirement of Rs 10 crore) Sinha told the industry players that they should bring in more capital.