Mint BFSI Summit: Edelweiss CEO Advocates ₹2 Per Transaction for Execution-Only Fintech Platforms

Radhika Gupta, managing director and chief executive of Edelweiss Mutual Fund

Mint BFSI Summit: Edelweiss CEO Advocates ₹2 Per Transaction for Execution-Only Fintech Platforms

The Mint BFSI Summit and Awards 2024 featured insights from industry leaders on the recent Securities and Exchange Board of India (Sebi) circular regarding fintechs selling direct mutual funds. The focus was on Execution-Only Platforms 1 (EOP 1), with a proposed cap of ₹2 per transaction. Edelweiss Mutual Fund’s CEO, Radhika Gupta, emphasized the viability of this cap at scale, highlighting the importance of cost considerations for both fintech platforms and asset management companies (AMCs). Other industry experts discussed the evolving business models in advisory services, the impact of pricing strategies, and the role of technology in bridging gaps for effective advisory services. The summit provided a comprehensive overview of the dynamic landscape within the mutual fund industry.

 

Radhika Gupta, managing director and chief executive of Edelweiss Mutual Fund
Radhika Gupta, managing director and chief executive of Edelweiss Mutual Fund

Mint BFSI Summit: Edelweiss CEO Advocates ₹2 Per Transaction for Execution-Only Fintech Platforms

Title:Mint BFSI Summit: Edelweiss CEO Advocates ₹2 Per Transaction for Execution-Only Fintech Platforms
Outline:
1. Event OverviewThe Mint BFSI Summit and Awards 2024 focused on insights from industry leaders regarding Sebi’s circular on fintechs selling direct mutual funds.
2. EOP 1 Transaction CapDiscussion on the recent Sebi circular specifying a maximum charge of ₹2 per transaction for Execution-Only Platforms 1 (EOP 1) licenses.
3. Edelweiss CEO’s PerspectiveRadhika Gupta, CEO of Edelweiss Mutual Fund, suggests that the ₹2 cap is sufficient when implemented at scale, emphasizing the need for cost considerations.
4. Industry InsightsExploration of the proposed cap’s impact on both fintech platforms and asset management companies (AMCs), with a focus on sustainability.
5. Business Models in TransitionInsights from Rajeev Thakkar (CIO of PPFAS Mutual Fund) on evolving business models, where AMCs and advisory businesses can add value beyond pricing.
6. Zerodha’s ApproachVishal Jain, Head of Zerodha Mutual Fund, discusses the company’s strategy, highlighting a commitment to attracting new customers alongside cross-selling.
7. Tech Platforms and Advisory ServicesVivek Banka (Co-founder of Goal Teller) addresses the lack of centralized financial data as a barrier to advisory services, citing the potential of the account aggregator framework.
8. Challenges in Mutual Fund SalesAmit Bivalkar (Founder of Sapient Finserv) notes the prevailing challenge where distributors prioritize insurance sales over mutual funds due to higher commissions.
9. Industry Dynamics OverviewSummarizes the summit’s comprehensive coverage of the dynamic landscape within the mutual fund industry.

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