`It has been observed that some of the Asset Management Companies (AMCs) are proposing to introduce bundled products and some existing MF schemes have such bundled products with insurance features in their investments schemes like SIP INSUR(Systematic Insurance Plans INSUR), In this regard, it is informed that no existing schemes or one which are proposed to be launched shall have bundled products eg, insurance features wrt scheme investments (such SIP Insure,’’ said Bithin Mahanta, general manager, Investment Management Department, Sebi
Mumbai:
In a significant decision, the capital market regulator Sebi has banned bundling of mutual fund products with insurance products with immediate effect.
Bithin Mahanta, general manager, Investment Management Department, Sebi, has asked Association of Mutual Funds of India(AMFI) last Friday to convey its (Sebi) decision to Mutual Funds (MFs) and has further said that any existing products which have already such bundled insurance features should be withdrawn.
“It has been observed that some of the Asset Management Companies (AMCs) are proposing to introduce bundled products and some existing MF schemes have such bundled products with insurance features in their investments schemes like SIP INSUR(Systematic Insurance Plans INSUR), In this regard, it is informed that no existing schemes or one which are proposed to be launched shall have bundled products eg, insurance features wrt scheme investments (such SIP Insure,’’ said Mahanta,