Sebi proposal on distributors, advisors can trip mutual funds Business from banks will be adversely impacted, advisors likely to go out of trade The Securities and Exchange Board of India’s (Sebi’s) renewed push to split the role of an investment adviser and distributor is causing a lot of heart burn in the Rs 22 trillion mutual fund industry. The industry, which has been riding high due to robust inflows of Rs 50 billion a month from the systematic investment plan route could suddenly find itself in a situation when one of the prime contributors to the assets under management, banks, will be completely out of action. “If the proposals are implemented, around 40 per cent of inflows will be impacted as wealth management arms of banks will no longer be able to give advice on mutual funds,” said the CEO of a fund house. “The latest proposals will also drive the bulk of the business towards the distribution side,” said Dhirendra Kumar, CEO, Value Research. Distribution per se is