Restrictions on Mutual Funds to pay Commissions to Distributors to continue

New Sebi chief UK Sinha said he does not intend to reverse rules put in place by his predecessor, by CB Bhave, that restricted the ability of mutual funds to pay commissions to distributors. Indian fund houses, which manage equity and debt schemes with a corpus of over Rs 7,000,00 crore, were hopingfor change in policies introduced by CB Bhave, whose three-year tenure ended in February this year.
But in his first interview after taking over as chairman of India’s stock market regulator, the former CEO of UTI Asset Management Company-the fourth-largest fund house-said a U-turn was not on the cards.