AMFI has shortlisted 8 audit firms: M.P. Chitale, Deloitte India, DSR, Brickwork, PricewaterhouseCoopers, Khimji Kunverji, T.R. Chadha and N.M. Raiji, out of the 11 firms that had shown interest in carrying out due diligence for distributors. AMFI was earlier planning to appoint four auditors.
The number of distributors who will fall under the ambit of due diligence has now come down from 529 to 402. “The distributor count has gone down because most of the distributors did not match the criterion of presence in 20+locations. AMFI has individually verified the same, and have taken a written statement from all the distributors who did not match the criteria. We plan to roll out the due diligence by the end of this month (March, 2012),” said V. Ramesh, Deputy Chief Executive, AMFI.
SEBI had stated that due diligence will be initially applicable for distributors satisfying one or more of the following criteria:
· Multiple point presence (more than 20 locations)
· AUM of over Rs. 100 crore across industry in non-institutional category including high net worth individuals (HNIs)
· Commission received of over Rs. 1 crore p.a. across industry
· Commission received of over Rs. 50 lakh from a single AMC
AMFI will soon award contracts to the eight shortlisted firms. It plans to initiate the due diligence process in the next eight days, said a source to Cafemutual.