Listen to this article
AMFI does not allow any close relative of existing MFDs and AMC officials to participate in MFD internship program which was introduced under SEBI regulatory sandbox.
Under MFD apprentice program, fund houses can have exclusive partnership with an individual MFD and pay them a monthly stipend of up to Rs.15,000 for the first 12 months. During this period, fund houses will be responsible for training and development of the individual MFDs.
AMFI rules ensure that no one misuses this facility by availing the benefit stipend amount. In a communication sent to AMCs, AMFI said, “Close relative of an existing employee of any AMC (not just sponsoring AMC) shall not be permitted to participate in the internship plan, so as to ensure that the facility / benefit of the monthly stipend being offered by sponsoring AMC is not misused by any employees of AMCs or their close relative(s).”
If any person availing stipend is found to be the relative of exiting MFDs or AMC officials, AMFI will terminate ARNs of both intern MFD and existing MFD or suspend the erring AMC official.
AMFI said, “Any such incident of misuse shall be viewed seriously and may lead to disqualification/ debarment of the intern MFD permanently and suspension /cancellation of ARN of the MFD who is closely related to the intern, apart from the matter being reported to SEBI.”
