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SEBI Chairman UK Sinha said that an amount set aside by fund houses for investor education — equal to 2 basis points (bps) of assets under management (AUM) -- should be utilised properly, else SEBI would be compelled to step in and deploy them. For the period October 2012 to April 2015, the accumulated amount under this head amounted to ₹500 crore, according to Sinha.
Very few genuine investorsSinha said that on-site visits by SEBI officials to 18 locations across 22 AMCs showed that only 18 per cent of the venues had genuine investors. In 65 per cent of the cases, there was no surety that the programme would be held; they were either advanced or cancelled. In 6 per cent of the cases they turned out to be distributor events. “We cannot remain silent spectators,” Sinha warned.
“A majority of the funds are doing a very good job but through our on-site inspections we have found out that things are not healthy. I hope the industry will come together and take some action.”
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