Sebi asks mutual funds to float pension products
Fri, 22 Jun 2012 00:26:11 -0600
Market regulator in touch with FinMin to work out tax issues
Market regulator Sebi has asked fund houses to come out with pension schemes and it is in touch with finance ministry to sort out the taxation issues.
"We are in touch with tax authorities and have sought similar treatment with the pension products (for mutual fund schemes)," Sebi chairman UK Sinha said at an event in Mumbai.
Fund houses can come out with pension products to attract retirement money into the capital market, he said.
The existing provisions of the Income Tax Act makes pension products of insurance companies eligible for tax deduction benefits. However, no such benefits are available for mutual fund schemes.
Industry experts said the Securities and Exchange Board of India (Sebi) would have to modify regulations to enable the mutual fund houses to launch of pension schemes.
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