Indian market regulator, the Securities and Exchange Board of India (SEBI), said that the body is not going to roll back the recently-introduced norms related to mutual fund industry. SEBI has banned entry load and parity in exit loads, in its recent orders, for all categories of the investors, causing undue sensation across fund houses.

SEBI Chairman CB Bhave, on Tuesday, held a meeting with the Chief Executive Officers of the all leading fund houses, discussing ground realities that have emerged after the issuance of new guidelines. Industry leaders said that it would be difficult for the budding industry to bear stringent guidelines under hard economic conditions. However, the market regulator remained glued to its stand, asking the industry to adjust with new guidelines.

The CEO of a large domestic mutual fund house said on the condition of anonymity, "Sebi's moves have moderated the distributors' compensation and they certainly are not happy. There is no overnight solution to this new development."

Another fund manger said that the impact of new guidelines will be visible from the industry's August numbers, as distributors are required to negotiate the commission with customers under the new regime going to start from August 1.