SEBI Planning Curb On Proliferation Of Thematic Mutual Fund Schemes: Buch
There is no reason to put a cap on the thematic schemes, rather something should be done to curb the root cause of such proliferation, Buch said.
One root cause of the proliferation of thematic mutual fund schemes is the arbitrage between normal schemes and new fund offers, said Madhabi Puri Buch, chairperson of the Securities and Exchange Board of India. Therefore, to curb such proliferation, the regulator has a consultation plan approved by its board. However, further developments on this are yet to take place, the chairperson said.
An industry expert also mentioned that while the board has plans to curb the root cause of proliferation, the same proposal plan has not been brought to the mutual fund committee yet.
There is no reason to put a cap on the thematic schemes, rather something should be done to curb the root cause of such proliferation, Buch said. If the market stakeholders have any other such root causes for proliferation in mind, they can come forward before the regulator, she added.
While speaking at an event by the Association of Mutual Funds of India, Buch spoke about three schemes aimed at the financial inclusion of people from all walks of life.
Buch mentioned the Tarun Program, which is designed to help families and children understand financial products by actually experiencing investments firsthand. She compared this learning process to children building Lego models—where hands-on experience provides deeper understanding than textbook education.
The idea is to teach children about financial responsibility, such that the investor protection fund would be used for a select few of them, to invest Rs 100 per month for two years in a systematic investment plan. The initiative is currently in a pilot phase, with plans for significant scaling — potentially reaching Rs 20,000 crore over the next decade.
Buch also spoke about the MITRA platform, aimed at tracking the lost mutual fund investments. The digital platform is designed to simplify investment management by consolidating and organising scattered investments, particularly solving inheritance related confusions of securities.
Currently, many investors—especially young people and those living abroad—find it difficult to manage their investments due to complex paperwork and fragmented holdings. Mitra aims to change this perception from 'It's too difficult in India' to 'It’s so simple in India'.
The platform was carefully designed to balance convenience with fraud prevention, ensuring a seamless and secure experience for investors and their families.
