Mutual Funds to be listed in stock market

In a move aimed at providing mutual fund investors more options to buy or sell units of mutual fund schemes, the Securities and Exchange Board of India (Sebi) allowed mutual fund schemes to be transacted through brokers of stock exchanges. This move is expected to reduce the transaction costs for investors compared with what they were paying before Sebi clamped down on distributor commissions. The step is also a relief to many mutual fund investors, deprived of services from distributors, who have been selling lesser equity schemes because of lower incentives. In August, the market regulator banned mutual fund houses from charging entry load or initial fees that found its way to distributors. Sebi said, instead, distributors should collect commissions directly from investors.

(Source: The Hindu Business Line)