Securities and Exchange Board of India chief UK Sinha on Wednesday said that he doesn’t mind the poor response to some of the recently concluded public offerings as long as retail investors invest through insitutional investors such as mutual funds. “I don’t mind if retail investors don’t participate in the initial public offerings because I would rather like them to participate through institutional investors,” Sinha said at an event organised by investment planning platform 5nance.com.
“All over the world, including in India, retail participation historically has been primarily for getting in early. If retail is not participating, we shouldn’t worry about it as long as people come into the market (through other routes) and long-term interests are protected,” Sinha said.
Sinha also said that Sebi has simplified know-your-client process for investors and is in talks with the RBI, IRDA and the Centre to bring in a single KYC system for the financial sector. He said that Sebi is also exploring the possibility of providing mutual fund schemes through e-commerce platforms.
“My complaint to the MF industry is that because they are so much in clutches of distributors … they are not actively promoting the plans… We have created a team under Nandan Nilekani and trying to find out how (to) best use technology, that would help investors invest in schemes they want to, fast and effectively,” said Sinha.