Market watchdog chief UK Sinha to meet Jaitley today
4 July 2014 4:52 AM IST
Days ahead of the Budget, Sebi chairman U K Sinha will meet Finance Minister Arun Jaitley on Thursday and is likely to suggest steps to improve investment climate with a view to garner household savings in capital market. In his presentation, sources said Sinha will press for measures to increase participation of retail investors in mutual fund and equity market. The meeting assumes significance as Jaitley is gearing up to present his maiden Budget in Parliament on 10 July. 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 government’s EPFO (Employees’ Provident Fund Office).
To help route 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 to invest in public sector mutual funds. There are about 45 fund houses in the country with total assets worth over Rs 10 lakh crore, but fund mobilisation has been tough in the past years and Sebi is of the view that their asset base has potential to rise to Rs 20 lakh crore within five years.
To help route 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 to invest in public sector mutual funds. There are about 45 fund houses in the country with total assets worth over Rs 10 lakh crore, but fund mobilisation has been tough in the past years and Sebi is of the view that their asset base has potential to rise to Rs 20 lakh crore within five years.
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