INSUBCONTINENT EXCLUSIVE:
to be better prepared for any event of a crisis in future
The capital markets regulator has also asked mutual funds to participate more in the voting process of company resolutions rather than
abstain from them.
Sebi said the ongoing credit crisis that resulted in returns of various debt mutual fund schemes taking sharp hits has
at par with banks having an SLR (statutory liquidity ratio) and CRR (cash reserve ratio)
year in September, the regulator brought in compulsory liquidity buffer in overnight and liquid funds, where in funds were mandated to
But, what I would wish is that the industry itself is going to operate on a cycle where it actually is able to gauge what is going to be the
He said it would squeeze the industry and over a period of time, mutual funds would be volume-based and not margin-based.
Analysts said any
Clearly, the industry needs to ask a question to itself, how do I sell the credit funds? How do I market it to consumers? Do you market it
retail investor does take a calculated call
have to do a more responsible sales job while selling credit risk funds because of the risks involved
He said investors are going to crowd the industry in search of alpha as the interest rate trend downwards
Alpha refers to the extent of outperformance of a product over its benchmark
But then from regulators perspective I would like to say, this cannot be the sole obsessive factor for the industry
regulator said mutual fund industry should play a leading role in corporate governance with regard to voting in corporate
tell that these are few in number, so we can afford to neglect them
Mutual funds will have to play a constructive role
I took note of the fact that there are 12 per cent abstentions by the mutual fund industry
This should be reduced to a single-digit over a period of next three to four years
It should come close to one to two percent
Others like insurance and pension fund industry should take a leaf out of the mutual fund industry and play a constructive role in corporate
