Market-regulator Securities and Exchange Board of India on Tuesday said that it is looking at the need to put a check on mis-selling of mutual fund products by the distributors through a compliance certification examination.
"There is a need to put a check on distributors, who mis-sell mutual fund products in the market. By May or June, we will come out with an online test for distributors," SEBI's Executive Director, K N Vaidyanathan, told reporters on the sidelines of a FICCI event here.
Currently, AMFI is conducting the test and accepts the registration formalities. From May onwards, the programme will be carried out by the National Institute of Securities Markets, a division of Sebi.
"From May onwards, NISM will conduct an online certification programme. In the entire process we need to distinguish between the passing of the test and certification. This is important," Vaidyanathan said.
Sebi wants to bring all financial products certification programmes under NISM. Presently, NISM conducts certification programmes for intermediaries in currency derivatives, registrar and transfer agents for stocks and registrar and share transfer agents for mutual funds.
