The Hindu Business Line : Bajpai bullish on MFs after UN fund's entry

THE United Nations Employees Pension Fund has registered itself as a foreign institutional investor (FII) in India, following the lead shown by such large entities as California Public Employees Retirement System (CalPERS).

The latest development, which has taken place in recent days, has prompted the Securities and Exchange Board of India (SEBI) to underline what its Chairman, Mr G.N. Bajpai said, opportunities that now exist abundantly in the Indian market. The SEBI chief was speaking at an investor camp hosted by CNBC on Saturday.

Later, addressing a meeting organised by the Associated Chambers of Commerce and Industry of India (Assocham), he specifically referred to the much-publicised move by CalPERS - an entity that provides miscellaneous retirement and health benefits to employees, retirees and employers. "CalPERS is enthused by what has been happening in India. It wishes to explore the opportunities that are available here," he added. A number of reforms that have boosted the overall investment climate, have helped their case.

SEBI has tried to bring in certain regulations with a view to facilitating growth of the capital market. In this situation, investing in equities remains a way of beating inflation and securing good returns. However, it is becoming increasingly difficult to decipher the copious information that keeps flowing out of the market.

Mr Bajpai, in this context, urged all investors to be disciplined and set targets. "The first responsibility for an investor is to help himself. This means, he should deal with a registered intermediary, monitor investments and protect his overall interests," he observed, adding that mutual funds (MFs) are widely expected to deliver decent returns. MFs, however, must be disciplined themselves so as to safeguard the interests of their customers, especially the savers who come to them with hard-earned money.

Mr Bajpai, replying to questions, mentioned that T+1 (a settlement system for bourses) is very much in the works and is being readied for a rollout. The real time gross settlement (RTGS), however, is a major issue on this front. However, a number of banks - 27 in all - have joined the system and others are expected to follow.

On the issue of demutualisation of stock exchanges, Mr Bajpai mentioned that plans worked out by various stock exchanges have been scrutinised and clarifications have been sought.

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