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Nilanjan Dey

KOLKATA, Jan. 2

IN the hush-hush world of fund mobilisation, Mr Sandeep Parwal, head of the seemingly low-profile SPA Capital Services Ltd of Delhi, is someone who has single-handedly juggled between Rs 8,000 and 10,000 crore over the past couple of years.

A number of equity funds rode the last bull market to declare large — in some cases, hefty — dividends. There were sections in the market which welcomed the idea of capitalising on these and promptly pulling out their money. As an intermediary, SPA ``played a role in bringing together the asset management companies and the investors concerned.'' Both are believed to have benefited from the process.

Mid-cap corporates and institutions, most of which are based in Delhi, form the core of the company's investor base. These, claims the distributor, largely account for its current monthly collections of around Rs 350 crore.

In the past, too, they had contributed largely to the company's gross mobilisation — inflows that SPA attributes to its relationships with clients, characterised as they are with personalised servicing.

The Rs 8,000-crore inflows recently found credence with the Prudential group, the overseas partner of ICICI in the latter's mutual fund business, which in 2001 identified the intermediary (along with a few others) for an award.

However, the chinks in the armour are not too far away either. SPA, according to Mr Parwal, clearly does not have a retail orientation. ``Ordinary investors do not walk into our offices. However, a retail base is necessary to ensure a broad-based approach,'' he told Business Line.

The company, which also has a presence in Jaipur, is currently exploring opportunities in centres such as Kolkata. The city, it is felt, is set to score over many others because of its ``changing investment culture''.

``Going by sheer risk-taking ability on the stock market, the city perhaps stands next to Mumbai. As everybody knows, a lot of money had moved into badla when the latter was in place. Mutual funds could get only a part of it,'' he states.

While the going has been good so far, will it remain a sustainable model in the future? Interestingly, the SPA Chief hesitates to give it a complete thumbs-up. A mutual fund intermediary, according to him, needs to back its sales spiel with an extensive advisory service, complete with research and after-sales follow up.

The formation of an association of financial planners, based in Delhi, therefore, is being billed as ``good for an industry which is increasingly moving towards commoditisation and branding''.

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