Sebi asks Mutual Funds to explain promoter group exposure to AUMs

By shubhamagarwal

Posted on April 17, 2017

Securities and Exchange Board of India is the well-known market regulator responsible for regulating the securities-related market of India. This is a fully-established autonomous firm headquartered in Mumbai.

SEBI is in news once again. Recently, this market regulatory body asked Mutual funds to give an explanation for the increase in funding of the inflow from several groups of promoters and entities that are directly or indirectly associated with their exposure to AUM, Assets under management.

SEBI has been continuously asking mutual funds to promote their assets in investors who invest in the retail sector and in small cities. Promoters and other groups who are sponsors have really contributed and shown a huge growth taking the group to the list of top-ten successful mutual funds houses.

After seeing this massive success, securities and exchange board of India have asked MFs to give their feedback on this trend. All of the mutual fund houses have been given time till April 18, of this month. They will be sending their comments to SEBI on promoter groups and sponsors groups exposure to Assets under management.

Let us check what statistics have to say: From the latest report of AMFI, Association of Mutual Funds of India:

As per the latest reports of AUM of top-ten mutual funds, by the February 11, of this year, AUM increased by 40% in just 11-months’ time. In this duration, mutual funds dependence on other promoters group rose by 4%.

When we say top-ten mutual funds we mean,

1. Birla Sunlife Mutual Fund,
2. DSP BlackRock Mutual Fund
3. Franklin Templeton Mutual Fund,
4. HDFC Mutual Fund,
5. ICICI Prudential Mutual Fund,
6. IDFC Mutual Fund,
7. Kotak Mahindra Mutual Fund,
8. Reliance Mutual Fund,
9. SBI Mutual Fund, and
10. UTI Mutual Fund.

Birla Sunlife Mutual Funds topped the list of Mutual fund houses contributing Rs 16,176 crore, ICICI Prudential MF contributing 9,171 crores became the second-most top fund houses.

Wrapping Up

SEBI is now looking forward to receiving a response from these Top-Ten mutual fund houses. Hopefully, all of these MFs will explain promoter group’s exposure to Assets under management.

Sebi asks Mutual Funds to explain promoter group exposure to AUMs