'Sebi's move on mutual funds is good'
The recent notice to mutual funds by Sebi to curb mutual funds offering new schemes with minor modification of existing schemes has been welcomed by the chairman of the Association of Mutual Funds of India (AMFI) A P Kurian.
By PTI |
KOLKATTA: The recent notice to mutual funds by Securities and Exchange Board of India (SEBI) to curb mutual funds offering new schemes with minor modification of existing schemes has been welcomed by the chairman of the Association of Mutual Funds of India (AMFI) A P Kurian.
"SEBI's move is well intended and we welcome it and will help the industry for healthy growth," said, Kurian.
SEBI would seek certification from trustees of the Asset Management Companies (AMCs) that the new funds offered were not mere 'minor' modification of existing schemes.
"New fund offerings are considered attractive by retail investors as they are available at Rs 10 (par value). During the recent boom, several MF introduced schemes which were similar to the existing ones, he said.
The industry launched 54 funds and raised Rs 38,000 crore from the market in 2005-06 taking advantage of the boom, Kurian said.
There are about 466 schemes in the MF industry operated by 29 mutual fund companies.
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