For some time now, the Securities and Exchange Board of India (Sebi) has made it clear that it wants the mutual fund industry to move to a model where there is clear segregation between advice and distribution. To end any conflict of interest that still exists, it came out with a consultation paper on Tuesday, which attempts to plug the loopholes being utilised by many individuals and entities to circumvent Sebi's plan of not allowing those who offer advice to also profit from being distributors.
