The regulator will review the performance
of a few schemes with fund managers, CEOs
SEBI Chairman UK Sinha said during the CII Mutual Fund
Summit 2012 that it has found that the majority of schemes of nine AMCs have
been underperforming their respective benchmarks on a continuous basis for a
sustained period. He said that SEBI will start reviewing the situation with the
respective fund managers and their CEOs.
He also said that SEBI could monitor their scheme
performance on a half-yearly or an annual basis. UK Sinha urged the trustees of
mutual funds to take an active role in monitoring fund performance.
Violating SEBI rules
SEBI has also found that certain AMCs are violating
SEBI rules. For instance, certain schemes have more than 25% investments from a
single investor which poses a concentration risk. He also said that a few AMCs
are using the inter-scheme transfer route to transfer losses of one scheme to
He also said that SEBI has come across certain schemes
which have investments from a bank and the scheme has in turn invested in the
same bank’s fixed
On the issue of AMC voting rights, UK Sinha said that
it is the responsibility of the AMCs to take up an active role in voting in
companies which they invest in. SEBI has already asked AMCs to disclose their
voting policy on their websites so that investors can make an informed choice
while investing in a particular fund.