AMFI appoints C V R Rajendran as next chief executive

MUMBAI: CVR Rajendran has been appointed as the chief executive officer of Association of Mutual Funds of India (Amfi), the industry's trade body, according to three mutual fund officials familiar with the matter. Rajendran, a former chairman and managing director of Andhra Bank, is taking over from HN Sinor, who is set to retire in September. At Amfi, he faces a tough task of easing the simmering hostility within the 44-member mutual fund industry.

Rajendran, who retired as the Andhra Bank chief in April, was selected from a list of 15 candidates, said industry officials in the know.

"He (Rajendran) was selected because of his strong banking background and communication skills. He will need to put in all his experience to bring the factions (in the industry) to the table," said a CEO of a mutual fund.

Sinor, who became Amfi's chief executive in 2010, was set to retire in 2013. But, his term was extended for two more years following requests from the industry . While assets under management of the industry grew to almost Rs 13 lakh crore from Rs 6 lakh crore in 2010 during Sinor's tenure as the Amfi chief, his last year with the industry body was messy as the rift between large and small fund houses widened over various issues including that on the commissions paid to distributors. Smaller fund houses had accused Sinor of taking decisions that bene fitted their larger peers.

"Sinor was disappointed in the way the industry be haved in the last one year.

Allegations were flying thick and fast and he was watching the disputes helplessly ," said CEO of another fund house.

Rajendran declined to comment on his appointment as he is yet to take permission from the government. Retired government executives proposing to take up private sector employment within a year of retirement are required to seek permission from the government.