The Association of Mutual Funds in India (Amfi) has conveyed to the Securities and Exchange Board of India (Sebi) that fund houses are not well equipped to do due diligence of institutional distributors and the regulator is in a better position to carry out the exercise. The mutual fund industry body has made a representation to Sebi on this issue, according to persons familiar with the matter.
A few weeks back, the capital markets regulator had written to the fund houses, asking them to carry out the necessary checks at the time of empanelling institutional distributors to sell their products. "Sebi had asked us to do due diligence of institutional distributors during their selection process and to see that they fulfilled certain criteria," said the chief executive officer of a foreign-sponsored mutual fund house on the condition of anonymity. "However, we have conveyed through Amfi that we are not in a position to do this and the regulator should perform this task," he added.
News Source – BUSINESS STANDARD.
NEW FUND LAUNCH
Axis Mutual Fund has launched Axis Dynamic Bond Fund, an open ended income scheme. The new issue is open for subscription from 6th April and closes on 20th April 2011.
News Source – AMFI INDIA.