Expressing his displeasure at the warnings in the mutual fund (FM) TV commercials rushing before the viewer can even read them, Commerce and Consumer Affairs Minister Piyush Goyal said on Wednesday that critical information about financial instruments should be disseminated at the same speed as that of advertising.
Mr Goyal even added that he was ready to change the regulations if necessary to ensure that the MF industry over 37 lakh lakh crore lines up.
âThey (the ads) read the disclaimer very, very quickly, which you can’t even understand. The disclaimer has to be prominent and have the same tone or speed as the rest of the ad. not rush into a warning, that loses the purpose of the disclaimer, âGoyal said, addressing a National Stock Exchange (NSE) event.
He asked NSE to approach asset management companies on this issue and also proposed regulatory changes to allow it.
âIf you need help, I’m happy to organize it through the Consumer Affairs Department’s consumer protection rules or consumer protection laws,â he said.
“But it is imperative that investors know or invest with their eyes open when entering the stock market or any (financial) product,” added the minister.
Previously, he asked the exchanges to develop a common knowledge of your customer (KYC) platform that can be used by various financial entities and can ensure the faster entry of an investor or participant on a platform. -form.
Mr Goyal said the ministry itself had taken inspiration from an admissions system at US universities that relies on additional information to be provided based on a particular university or course a candidate is looking for. , and a similar system can be explored by the financial industry.
“I urge you to consider and work with the regulator or the banking system to simplify the rules (on KYC) to ensure that more people enter the system,” he said, adding that some self-regulation should also be considered. .
Goyal further said financial products need to go through the lens of trust, transparency and accountability, and urged stock exchanges to be aware of this to attract inflows of retail and institutional investors.