MF distributors' nod not a must for shifting investments, says Sebi

The Securities and Exchange Board of India (Sebi) has asked asset management companies (AMCs) not to compel investors to get no-objection certificates (NoCs) from their existing distributors for shifting their investments.

This is a reiteration of the Association of Mutual Funds of India (Amfi) advice to AMCs to allow investors to change their distributor on the basis of a letter from them.

However, “it appears that this mandate is not being followed by the mutual fund industry,” it said.“Some AMCs are insisting on the investor procuring an NoC from the existing distributor for this switch over, despite the guideline from Amfi,” said Sebi.

Source:http://www.business-standard.com/india/storypage.php?autono=379292

Sebi cracks whip on incomplete MF documentation

In a move to make the mutual fund (MF) industry more transparent, the Securities and Exchange Board of India (Sebi) today asked asset management companies (AMCs) to stop paying commissions to intermediaries, including banks and other distributors, who did not keep proper documents of their clients.

The documents relate to know-your-client (KYC) and power of attorney (PoA) norms for the industry.
“All documents related to investors, including KYC, PoA, in respect of transactions or requests made through some mutual fund distributors are not available with AMCs and registrar and transfer agents. The same are to be maintained by the distributors,” it said.
The regulator has also asked fund houses to set up a separate customer service, mechanism for queries and grievances of unit holders.

Source: http://www.business-standard.com/india/storypage.php?autono=379293

India Infoline to start MF operations in Q1 FY11: Chairman

Financial services firm, India Infoline, plans to set up its mutual funds operations in the first quarter of FY11, after securing the final approval from Sebi, its Chairman said.
"We have received the in-principle approval from Sebi (to set up the asset management company). The final approval is expected in the next 2-3 months," India IIFL, Chairman, Nirmal Jain told reporters here.
IIFL plans to start AMC operations on its own but may also look at the option of partnering with any existing players in the future, Jain said.
Presently, IIFL has operations in equity and derivative brokerage and investment management amongst others. The company is operating from 1,500 locations.
It plans to increase the current branch strength, around 500 by 25-30 per cent over the next one year, while the number of franchises, now at 1,000, will be doubled during the period.
Commenting on its mortgage business, Jain said that the company has grown its mortgage business to a loanbook size of Rs 600-crore.
"We now have a loanbook of Rs 600-crore. We are currently offering the loan products from 20 centres, which would be scaled to 40 over the next 3-4 months," Jain said.

Source: http://economictimes.indiatimes.com/India-Infoline-to-start-MF-operations-in-Q1-FY11-Chairman/articleshow/5323933.cms