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The Association for Mutual Funds in India (AMFI), the industry body for mutual funds, on Friday elected Leo Puri of UTI AMC as its new Chairman and retained A Balasubramanian as Vice-Chairman. The former chairman had been Sundeep Sikka of Reliance AMC. In a board meeting in Mumbai on Friday, the mutual fund body also decided to improve the representation of smaller fund houses in the decision-making process. “Henceforth, all important meetings with SEBI and the Ministry of Finance will have a representative from smaller AMCs,” said the CEO of a fund house requesting anonymity. Our Bureau
The ₹13 lakh crore mutual fund industry is comprised of 44 fund houses, whose individual assets under management range from ₹1.7 lakh crore to as less as ₹30 crore. Over time, the business models of the large and small AMCs have diverged considerably while the representation at AMFI had always largely been in favour of larger AMCs.
For instance, of the 15 members on the AMFI board, seven belong to fund houses whose AUMs are over ₹30,000 crore while four more belong to mid-sized fund houses with AUMs of between ₹5,000-30,000 crore.
Usually, the CEO added, only representatives from the top 10 fund houses would be part of delegations to the regulator or the government. The new resolution passed by AMFI now ensures that a representative from a smaller fund house will also be part of such a delegation hereon.
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