Monday, June 28, 2010
A top official of the association of Mutual Funds in India said on Sunday, Mutual funds industry body AMFI is open to become a self regulatory organization in a gradual manner.
The body is ready to take up regulatory responsibilities, the AMFI (Association of Mutual Funds in India) official told to a news agency. The statement came after Sebi made suggestion in this regard.
AMFI chairman A P Kurian said, “We are open to taking up the responsibility and becoming a self regulatory organization (SRO)… Sebi can assign us and empower us in certain areas, as at first we will take up the regulatory responsibility for certain defined spheres in the MF industry.” He added “We will work with SEBI to evolve a working model.”
C B Bhave Sebi chairman had suggested at a CII event on mutual fund last week that Association of Mutual Funds in India should “seriously” examine donning the role of a self-regulatory organization.
Bhave had stated, “A lot of debate is going around on self regulation and AMFI has been demanding the status of self-regulatory body… so, it give a policy paper on the same to Sebi.”
He further added, “If we have to grow as an industry, we should stress on self regulation.” Kurian said, “We are working on a paper for the policy framework for the SRO to create a clear roadmap for the industry.”
Dhirendra Kumar, MF Tracking firm Value Research CEO said that combing the roles of a trade body with that of a regulator is not such a good idea as it would cause a conflict of interests.
Kumar said, “A self-regulatory role for AMFI will not be a great thing. MFs need a real regulator, which will be primarily focused on protecting investor interests”.
Over the past few years the country’s mutual fund industry has been growing strong and at the end of may the average assets under management of the 37 fund houses was standing at over Rs 8.03 lakh crore. He further added, the stress should be on getting an entire range of simpler products.
