SUBSCRIBE NEWSLETTER
  • Change Language
  • English
  • Hindi
  • Marathi
  • Gujarati
  • Punjabi
  • Tamil
  • Telugu
  • Bengali
  • MF News SEBI wants fund houses to have complete investor related documents

    SEBI wants fund houses to have complete investor related documents

    SEBI has asked all distributor channels to provide the necessary customer information to fund houses
    Team Cafemutual Aug 12, 2010

    SEBI has asked all distributor channels to provide the necessary customer information to fund houses, finds team Cafemutual. Read for more details.

    Mumbai: The Securities and Exchange Board of India (SEBI) said in a circular that it wants no payment to be made to the distributors if they do not complete the investor related documentation.

    SEBI further said that no new folios/accounts should be opened unless all investor related documents including account opening documents, personal account number (PAN), know-your-customer (KYC) forms, specimen signature are available with asset management companies (AMCs)/registrar and transfer agents (RTAs).

    The market regulator had earlier advised fund houses, through a circular issued on December 11, 2009, to confirm whether all investor related documents are available with them. It had also asked fund houses not to make any payment to distributors unless the documentation is complete.

    However, SEBI said that it has not received any confirmation from trustees of fund houses and thus it draws conclusion that investors’ documents are not available with the AMCs. “It has been observed that due to such incomplete documentation investors’ rights to approach the AMCs directly are restricted and investors are forced to depend on the distributors for executing any financial or non-financial transactions,” the regulator said in the latest circular.

    Some of the distributors are not comfortable sharing investor information with their respective asset management companies (AMC). The reasons for this could be that they fear that the AMCs would then directly approach the investor.

    This regulation again brings to front the argument of who is the “owner” of the investor: the AMC or the distributor. There have been instances in the past where some distributors have been in conflict over issues such as sending newsletters and mailers.

    It has, therefore, asked the AMCs to update investor related documents including account opening documents, PAN, KYC, power of attorney (if applicable), specimen signature by November 15, 2010. A confirmation on completion of the said process is to be submitted by November 22, 2010.

    women who cheat on husband wife cheated
    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

    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.
    0 Comment
    Be the first to comment.
    Login or Sign up to post comments.
    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.