Capital markets regulator Sebi will soon put in place norms to help entrepreneurs raise funds through ‘crowdfunding’, while discussions are also underway to allow sale of mutual funds through e-commerce platforms, Chairman U.K. Sinha said today.
A Sebi-constituted committee, headed by Infosys co-founder N R Narayana Murthy, to suggest ways for raising of funds through crowdfunding is likely to submit its report in a month, Mr. Sinha said.
“The committee is still deliberating on crowdfunding. They had made sub-committees, which have submitted the report to the main committee,” Mr. Sinha told reporters on the sidelines of an industry event on corporate governance.
“The committee is very active and sincere about it and I am sure in a month from now, we will get the final report and then we will come to the area of implementation,” he added.
The markets regulator had earlier come out with a discussion paper for crowdfunding norms to help young entrepreneurs and small groups of people raise funds.
Crowdfunding typically involves young entrepreneurs and small groups of people raising funds for their ventures through various online platforms involving individuals and organisations.
Sebi chairman also said the regulator is actively working towards making it possible for mutual funds (MF) to sell their schemes on e-commerce platforms.
Sebi has set up a committee under another Infosys co-founder Nandan Nilekani to suggest ways for boosting MF industry.
Noting that people are using online platform in a huge way to buy products, Mr. Sinha said he was meeting Mr. Nilekani later in the day and the guidelines on the same could be implemented soon.
He also reiterated that a number of lessons have been learnt from the Amtek Auto crisis.
“There are number of lessons to be learnt from this episode. And I think we will take very important remedial measures very soon,” Mr. Sinha added.
JP Morgan Mutual Fund got into trouble due to its exposure to debt securities of debt-laden Amtek Auto, while a few other mutual funds have also faced similar problems with regard to corporate bonds of a few other distressed firms.
