SEBI Plans Incentives for Women and Tier-2, Tier-3 City Investors in Mutual Funds

According to the regulator, the move will not only add new participants but will also expand the reach of mutual funds to underrepresented segments, thereby contributing to deeper financial inclusion. Further, the Sebi chief said that Sebi is reviewing the classification of mutual fund schemes to provide greater flexibility for product innovation, improve clarity and address the problem of overlap in schemes' portfolios.

He said further steps will be taken based on the feedback received from the consultation process. "These measures will help the industry become more transparent and investor-friendly," the Sebi chairman said. Recently, SEBI has reviewed the reports and filings submitted by mutual funds under ease of doing business and compliance simplification measures."

According to the review, the regulator has made a decision to do away with the filing requirement of more than 52 reports, notices, and addenda by asset management companies (AMCs). The regulator will also try to thoroughly simplify mutual fund rules in the next several months. Pandey stated that the intention is to make compliance more convenient for the industry and safeguard investors' interests.

In addition to this, SEBI also warned investors of fraud being promoted through social media messages or mobile apps. These falsely claim to provide access to the stock market through foreign portfolio investors (FPIs). SEBI warned that such schemes are illegal and are not supported by the regulator.