He was speaking at the Morningstar conference in Mumbai today.
Chauhan further said the BSE does not charge distributors, adding the platform has over 2 lakh distributors.
“Distribution is the power of large asset management companies (AMCs), not performance,” he said.
Therefore, some mutual fund players do not like us, Chauhan added.
The BSE chief further regretted that the MF industry is suffering from short-sightedness.
“This is happening because of only the top players. MF industry does not want to reduce the cost of distribution,” said Chauhan.
He believes that with the growth of market, revenues of distributor revenue is bound to go down.
“All large stock traders are going towards zero broking charge. Insurance distribution cost will also go down with time,” he added.
Mutual funds' asset under management (AUM) increased to over Rs 24 lakh crore in July-September quarter, a 14 per cent surge from the year-ago period.
The asset base of the industry, comprising 41 players, was Rs 23.4 lakh crore in the preceding three months, showing a growth of just 2.5 per cent on quarterly basis, according to the data by Association of Mutual Funds in India (Amfi).
The total asset base of all the fund houses put together was Rs 21 lakh crore in July-September 2017.