Financial Daily from THE HINDU group of publications
Friday, Dec 13, 2002
Financial Daily from THE HINDU group of publications Friday, Dec 13, 2002 |
|
|
|
|
|
Markets
-
Mutual Funds AMFI moves ahead with self-regulation initiatives Our Bureau
KOLKATA, Dec. 12 THE Association of Mutual Funds in India (AMFI) may seek inputs on self-regulation from FIRE (Financial Institutions Reforms and Expansions), the US-aided programme on reform and education for financial institutions. Initial discussions on the matter took place recently. The association would like FIRE to research on the self-regulatory organisations (SROs) that exist elsewhere, according to Mr A.P. Kurian, Chairman of AMFI. The plan is to find out the nature of such SROs and the norms that govern their functioning. "An analysis by FIRE will help us realise how trade bodies established by mutual funds in other countries view the issue of self-regulation," he said, adding that a number of AMFI's counterparts were not full-fledged SROs. Certain sections of the MF industry have so far frowned upon the possibility of AMFI turning into an SRO, fund circles point out. And as a senior fund executive mentioned recently, it needs to be seen if leading industry bodies such as ICI (Investment Company Institute of the US) really operate as SROs. AMFI had earlier sought expert help on risk management systems, Mr Kurian said. The association, along with PricewaterhouseCoopers, had laid out certain basic standards of risk management for all funds. The latest update circulated by AMFI indicated that these standards were particularly meant to address issues such as fund management, operations, customer service, distribution, disaster and business contingency etc. After its full implementation and beginning April 2003, the risk management system is expected to be made part of internal audit. Internal auditors will check on a regular basis about the adequacy of the system, it is pointed out. The involvement of FIRE is not a new development for India, it is pointed out. In fact, the present project (`FIRE Two' in Mr Kurian's parlance) has resumed after a serious break.
Send this article to Friends by
E-Mail
|
Stories in this Section |
|
The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription Group Sites: The Hindu | Business Line | The Sportstar | Frontline | Home |
Copyright © 2002, The
Hindu Business Line. Republication or redissemination of the contents of
this screen are expressly prohibited without the written consent of
The Hindu Business Line
|