Speaking at the 11th CII MF Summit in Mumbai SEBI Chief U K Sinha urged AMCs to improve the quality of investor awareness campaigns and utilize the two basis points of AUM set aside for investor education more effectively.
Sinha said that onsite visits by SEBI officials at 18 locations across 22 AMCs found that only 18% of the venues had genuine investors. In 65% of the cases there was no surety whether the program would be held. In 6% of these cases they were distributor events, Sinha observed.
“I would urge the industry to take it up seriously. We can’t be silent spectators. If the corpus is not spent well SEBI would step in and deploy it on its own. I hope this situation would not arise,” he said.
Sinha said that from 2012 till 2015, the industry had accumulated a corpus of Rs. 500 crore for IAP. Of this, the industry has already spent Rs. 330 crore.
