"Formation of SRO will help in increasing the reach of the
mutual fund industry by spreading awareness among investors," Bajaj told reporters here.
He also noted that there is a need to check the high attrition rate in the MF distribution business.
Market regulator Sebi is likely to appoint an SRO for
mutual fund distributors soon, after notifying changes in rules for setting up the body.
Institute of Mutual Fund Intermediaries (IMFI), Organisation of Financial Distributors (OFD) and Financial
Planning Standards Board India (FPSB) have applied for appointment as SRO.
While IMFI is promoted by the Association of Mutual Funds
in India (AMFI), which is an association of mutual fund companies, OFD is set up by Financial Intermediaries
Association of India (FIAI), a grouping of 15 large distributors.
Managing Director and Chief Executive Officer of BSE,
Ashish Chauhan, said that mutual fund houses should use the stock exchange platform for reducing cost of transaction and easy processing.