Informist, Thursday, Sep 26, 2024

--SEBI Buch: Participation of senior people root cause of AMFI's success

--SEBI Buch: On verge of introducing MF-lite norms for passive funds

--CONTEXT: SEBI Chairperson Buch speaking at AMFI event

--SEBI Buch: Easy to talk of MFs to avoid conflict of interest claims

--SEBI Buch: Face conflict of interest accusation if I talk of REITs

--Member Bhatia: SEBI trying to promote InvITs like AMFI's MF promotion

--Member Bhatia: SEBI trying to promote REITs like AMFI's MF promotion

--CONTEXT: SEBI whole-time member Ashwani Bhatia at AMFI event

MUMBAI – It is easier to talk about mutual fund products than real estate investment trusts to avoid being accused of being conflicted in my interests, Securities and Exchange Board of India Chairperson Madhabi Puri Buch said today. Speaking at the Association of Mutual Funds in India's annual general meeting for 2023-24 (Apr-Mar), Buch said that even in mutual fund talk, she ran the risk of being accused of conflict of interest due to her past association with ICICI Bank group of which ICICI Prudential Mutual Fund is a part.

Addressing the same event, SEBI's whole time member Ashwani Bhatia also said that he stood the chance of being accused of conflict of interest as far as AMFI talk is concerned, given his past role as a member of AMFI board. Bhatia has in the past been a managing director and chief executive officer of SBI Mutual Fund.

He said SEBI was trying to promote REITs and infrastructure investment trusts. To do this, he said SEBI was considering a tagline similar to AMFI's 'Mutual Funds 'Sahi Hai'.

Buch said SEBI was on the verge of introducing light regulations for passive funds and invited MF industry and distributors to provide their suggestions and feedback. She said the serious time that senior and knowledgeable people gave to AMFI was the root cause of its success.

Buch praised the MF industry for its participation in the corporate bond market. She said the volume of repo trades in corporate bonds traded under the aegis of the of AMC Repo Clearing Ltd has grown. In a presentation by AMFI at the event, it was stated the monthly volume in these trades had touched around 200 bln rupees in August.

Buch urged the MF industry to take seriously the stewardship code under which they are supposed to vote on all resolutions at the shareholder meeting of the companies they are invested in. End

Reported by Rajesh Gajra

Edited by Deepshikha Bhardwaj

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