MF News No HDFC MF pre- IPO allotment for distributors

No HDFC MF pre- IPO allotment for distributors

HDFC Mutual Fund reportedly recalls shares allotted to distributors.

Nishant Patnaik Jul 2, 2018

SEBI has reportedly asked HDFC Mutual Fund to recall shares allotted to mutual fund distributors through pre IPO placement, said three people aware of the development.

Following this, the fund house has approached distributors through phone calls on Saturday. “On SEBI’s direction, we have recalled our pre IPO placement to distributors,” said a senior official of HDFC Mutual Fund.

Last month, the fund house allotted shares of Rs.150 crore to 140 distributors through private placement. HDFC AMC had reserved up to 7.2 lakh shares for its empanelled distributors.

Currently, the fund house has over 60,000 empanelled distribution partners across India.

Like what you are reading?

Login to get instant access to this article and many other such articles on business development, success stories and industry updates.

Don't worry ... it's FREE!

Have a query or a doubt?
Need a clarification or more information on an issue?
Cafemutual welcomes all mutual fund and insurance related questions. So write in to us at newsdesk@cafemutual.com

Latest Articles

Your bulletin for the day

Decoding the latest KYC status

‘Mid cap funds will continue to deliver healthy returns’

MFs increase exposure to private banks, capital goods and consumer goods

MF bulletin: The MF industry adds close to 7 lakh new investors in March

ICICI Prudential MF, SBI MF and HDFC MF are the biggest hybrid players

SBI MF, ICICI Prudential MF and HDFC MF: Top three in debt AUM

How to enhance your earnings?

Beware of this new fraud

Axis MF promotes R Sivakumar as the Head of Corporate Strategy

Click to clap

Disclaimer: Cafemutual is an industry platform of mutual fund professionals. Our visitors are requested to maintain the decorum of the platform when expressing their thoughts and commenting on articles. Viewers are advised to refrain from making defamatory allegations against individuals. Those making abusive language or defamatory allegations will be blocked from accessing the web site.

7 Comments

MITESH C SHAH · 5 years ago `

Pls give HDFC AMC SHARE TO DISTRIBUTOR ON DISCOUNT PRICE

AMBRISH · 5 years ago `

Equal Justice for All, Law has taken it's own Course. Thanks to SEBI for protecting the rights of Honest Shareholders.
Regards

Raj kumar gupta · 5 years ago `

100000

l Ashok · 5 years ago `

From ET news, HDFC alloted nearly 10000 shares perhead by the value of Rs. 1050 per share by private placement to 140 distributors. But remaining 59860 distributors who had empanelled with HDFC are not alloted. Why this partiality. I think some thing behind this. Now we came to know SEBI asked HDFC to cancel the deal. I think it is fair.

VEERENDRA KUMAR A D · 5 years ago `

Why only 140 distributors other distributors were not given option only this is very unethical practice from a reputed institution like HDFC using distributors name they gave preference to select few.

Bansi Hariani · 5 years ago `

Who are these 140 distributors. Why not all 60000 were allotted shares. This clearly shows the bias attitude of the HDFC AMC's towards the small distributor.

rashmin gandhi · 5 years ago `

same reules for all mf distributors , take benefit for all,why 140 distributors?

More than 2,07,000 of your industry peers are staying on top of their game by receiving daily tips, ideas and articles on growth strategies. Join them and stay updated by subscribing to Cafemutual newsletters.

Fill in the below details or write to newsdesk@cafemutual.com and subscribe to Cafemutual Newsletter now.

POLL

MORE POLLS

AMCs can pay trail commission to the new distributor if investors initiate transfer of their assets. How will this impact you?

Help me get clients of other distributors who are underserved

Lead to poaching of clients

No significant effect on my business

EVENTS FORUMS