Days ahead of the Budget, Securities and Exchange Board of India Chairman U K Sinha will meet Finance Minister Arun Jaitley on Thursday, July 3.
The Sebi chief is likely to suggest steps to improve investment climate with a view to garner household savings in capital market. In his presentation, sources said, Mr Sinha will press for measures to increase participation of retail investors in mutual fund and equity market.
Mr Jaitley will present his maiden budget in Parliament on July 10.
Capital market regulator Sebi has been pressing that there is a need for uniform tax treatment of retirement-related investments irrespective of the investment routes - pension products launched by mutual funds or the retirement funds managed by the Employees' Provident Fund Office (EPFO).
To help channelise more funds for long-term investment purposes, the market watchdog has suggested to the government that it allow all PSUs to park their surplus cash in mutual funds.
The current norms permit only Navratna and Miniratna Central Public Sector Enterprises (CPSEs) to invest in public sector mutual funds.
There are about 45 fund houses present in the country with total assets worth over Rs 10 lakh crore, but fund mobilisation has been tough in the past couple of years. Sebi is of the view that their asset base has potential to rise to Rs 20 lakh crore within five years.
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.
