WF: What do you feel will be the role of the stock exchanges in mutual fund transactions? Do you see advisors taking up a BSE/NSE terminal or do you think that nothing much is going to change as far as the advisors are concerned?

Manoj Srivatsava: There are two aspects here. One is as far as clients in larger cities like Delhi, Noida, Kanpur - who are already being serviced by established distributors and advisors. I keep hearing that transacting on stock exchanges will be cheaper for investors - but I don't understand how. If I am not charging a fee and there are no loads, what can be cheaper than that any way? If a client buys through the stock exchange, he will pay a brokerage as well as STT. So how is that cheaper? I am actually in an advantageous position versus a broker with a terminal. So, there is no tension on that count.

On the other hand, when I look at investors in smaller towns in UP like Kanauj, Itawah etc, small IFAs are getting diverted from MF industry. Distributors are not going into smaller towns now because of lower commissions. Mobilisations have dropped and investors are not being serviced. Here, a broking terminal will help maintain and actually increase MF penetration. So, my view is that MFs on stock exchanges will supplement advisors and distributors in smaller towns which are not being properly serviced now.

WF: What do you see as the future of fund platforms, now that stock exchanges have started offering their own platforms for mutual funds?

Manoj Srivatsava: I feel that those pure mutual fund platforms will lose their shine, because now NSE and BSE are providing terminals where you can not only do MFs but also equities. Speaking about myself, I would actually look to take a terminal from a reputed broker like Motilal Oswal and set up comprehensive services in smaller towns like Kannauj and Itawah - where through my terminal, I can offer clients equities, MFs, commodities etc. It will become far more practical and feasible for me to set up branches in smaller towns in UP with this kind of an overall approach - rather than selling only MFs there.

I actually see newer opportunities opening up for my business in the new environment. Even in the larger cities where we are already established, newer opportunities can open up once we take up a terminal with a broker who offers all products. For example, wholesale debt trading on stock exchanges can be a good alternative for some of our large clients. There is a big opportunity to broadbase your offerings to your existing clients as well as tap new clients in new markets with a comprehensive solution - which you did not tap earlier as a pure MF distributor.