The Securities and Exchange Board of India (SEBI) on Friday said that asset management companies (AMCs) should launch pension products in order to increase households’ participation in the market.
“Compare to any part of the world, the level of participation in the Indian market by households is very low,” said UK Sinha, chairman, SEBI. “One reason is that retirement or pension money is not coming into the market.”
Fund houses should launch retirement products since mobilisation of money on voluntary basis for long-term purposes was allowed legally, he said.
“It is legally possible that retirement money can be invested in the markets ... why are AMCs not able to launch pension funds?” said Sinha.
On the issue of regulating alternate investment funds, Sinha said the step aims at investor protection. “It is risky for any regulator to let a pool of fund remain unregulated.”
SEBI last year proposed regulations for alternative investment funds under the title SEBI (Alternative Investment Fund) Regulations. The funds, which would come under the proposed regulation include venture capital funds, PIPE (private investment in public equity) funds, private equity fund, debt funds, infrastructure equity fund, real estate fund, SME fund, social venture funds, strategy fund.