Ecommerce Sites May Soon Start Selling Mutual Fund Products Online
Soon, Indian consumers could buy Mutual Funds online on ecommerce sites similar to Flipkart, Snapdeal, Amazon and others – Market regulator SEBI (Securities & Exchange Board in India) plans to soon issue norms that will allow ecommerce companies to sell Mutual Fund products online.
Currently, tedious processes involved in buying mutual funds make it difficult for masses to participate in this investment instrument.
SEBI is now coming up with new norms that aim to simplify the process of mutual fund investment and attract wider audiences. The new norms will also include implementing know-your-customer (KYC) procedures online.
These new norms are expected to boost the Mutual Fund Industry in India.
SEBI chairman U K Sinha told PTI, “Hopefully in next couple of months we will be coming out with a new set of regulations of distribution of product. We are looking to ensure that there is no need for in- person verification, no need to vet signature. Everything should be able to be done online”
SEBI has setup a committee under the leadership of Industry veteran Nandan Nilekani to suggest ways of increasing participation of retail investors in Mutual Funds.
Is it Feasible?
It will all depend on easy the process is. Currently, buying Mutual Funds requires a Demat account, KYC details, Bank account information etc. Even with simplified process, some of the basic requirements will still remain. So, while you may not see mutual funds being sold on Flipkart, Snapdeal or others, it is definitely possible that we may have ecommerce portals specifically dedicated to buying Mutual Funds.
SEBI Chairman’s statement that, “we will be able to bring about an entirely new paradigm in distribution of mutual fund products” point to the fact that we may see a complete overhaul of process.
We do not have much details currently, but we will keep you posted as soon as we have more on this!Mutual Funds