SEBI orders tests for intermediaries

S. Vaidya Nathan

THE Securities and Exchange Board of India has made AMFI certification mandatory for all mutual fund agents from November 1, 2001. The Association of Mutual Funds of India runs a certification programme for agents and distributors of mutual funds.

For agents and distributors, this is mandatory from March 31, 2003. Employees of mutual funds on the sales and marketing side should be encouraged to complete this certification by December 2002.

Mutual funds would have to monitor the activities of their agents so that they do not indulge in any kind of malpractice while selling funds. These moves are intended to make the system more transparent.

Half-yearly results: SEBI has asked all mutual funds to post their half-yearly results on www.amfiindia.com twice a year. These would also have to be published. The mutual funds would also have to disclose their portfolio on their Web sites on a half yearly basis.

ING Dividend: ING Mutual Fund has announced a dividend of five per cent (Rs 0.50 per unit) for the half year. This dividend is for the open end scheme, ING Income Portfolio. The dividend is tax free in the hands of investors. The record date for the dividend is September 26 2001. The fund invests in debt and money market instruments. The cum dividend NAV on this date was Rs 10.73 per unit.

PruICICI Dividend: Prudential ICICI Mutual Fund has declared a dividend of 6 per cent (Rs 0.60 per unit) for the Prudential ICICI Income Plan. The dividend is for the six months ended September 30, 2001. The record date for the dividend is September 21. The cum dividend NAV on that date was Rs 10.85 per unit. Prudential ICICI Mutual Fund has assets worth Rs 6,400 crore under management under the schemes in its fold.

Sun F&C Dividend: Sun F&C Mutual Fund has announced a dividend of 0.8 per cent (Rs 0.08 per unit) for the monthly dividend plan and 2.4 per cent (Rs 0.24 per unit) for the quarterly plan of its Monthly Income Plan. The record date is September 25, 2001. The fund has also declared a dividend of 5.5 per cent (Rs 0.55 per unit) for the money value fund (bond option). The record date is September 24, 2001.

Reliance MF: Standard Chartered Grindlays has entered into an arrangement with Reliance Capital Asset Management (fund managers to Reliance Mutual Fund) for distribution of the latter's products. The bank will market five schemes of the fund -- Reliance Liquid Fund, Reliance Income Plan, Reliance Monthly Income Plan, Reliance Growth Fund and Reliance Vision Fund. The products will be distributed through the 50 branches of the bank and its 250 investment counsellors.

Click here for Table

Mastershare dividend: For 2000-01, UTI has announced a dividend of 10 per cent for Mastershare 1986. The record date for income distribution is October 19.

US-64 prices: The repurchase price for unitholdings of up to 3,000 units would be Rs 10.20 per unit in October 2001 under the Special Liquidity Package. This is a rise of 10 paise over the September levels. The package was offered from August 2001 at a price of Rs 10 per unit and is due to end in May 2003 at Rs 12 per unit. For holdings in excess of 3,000 units, a repurchase facility linked to the NAV would be available from January 2, 2001.

Children's Fund from LIC Mutual: LIC Mutual Fund has launched LIC Children's Fund to generate long-term appreciation by investing in equity and debt. The scheme closes for subscription on October 16, 2001. The fund will invest at least 80 per cent in debt instruments and 20 per cent in equities in capital appreciation. There would be no lock-in period.

On an ongoing basis, the fund will offer entry at a load of 1 per cent to the NAV. Repurchases within three years of the date of allotment will carry an exit load of three per cent. If repurchases are made after three years and before the child turns 18 years-old, there would be an exit load of 1.5 per cent. A personal accident insurance cover equal to 10 times the amount invested will be offered. But the maximum limit is Rs 3 lakh.

Click here for Table

Index Fund from PruICICI: Prudential ICICI Mutual Fund has proposed to launch two index funds. These would track the S&P CNX Nifty and the BSE Sensitive Index. The launch is subject to SEBI's approval. The fund will be called Prudential ICICI Index Fund.