Market regulator Securities and Exchange Board of India is set to launch 1,500-2,000 super-automated teller machines across the country in 12-18 months for the growth of the mutual fund industry, a top official said.
"To facilitate investments in mutual funds and availability of information to investors, we need to create a huge infrastructure. We are trying to build this through a concept of super-ATM centres around the country," Sebi's executive director, K N Vaidyanathan, said at a mutual fund award function in Mumbai.
At the press of a button in super-ATMs, investors would be able to transact and get all the information about mutual fund schemes.
It will also send queries and receive information as well, he said.
Sebi would partner with the mutual fund industry to build infrastructure and a large part of the work will be in place in the next 12-18-months period.
Vaidyanathan said that the mutual fund industry was poised to grow from Rs 3-lakh-crore (Rs 3 trillion) to Rs 30-lakh-crore (Rs 30 trillion) in the next 5-years.
The number of shareholders accounts also was poised to grow from 2-crore to 5-crore in the next 5-years.
A total savings of $1.9-trillion would be seeking avenues for investment by 2015, he said.
The regulators have done a fair bit towards tightening of quality of disclosures.
This will continue as there are newer producers entering the capital market, he said. Vaidyanathan said that the index funds are substantially cheaper than actively-managed funds, but index funds are heavily promoted as a easiest way to get investors converted into equities.
"We need to do some work on advisory-distribution side. The longer-term game plan has to be that advisory-distributors have to come under the regulatory framework. We will work towards it," Vaidyanathan said.
The regulator is also keen on focusing on investors education.
