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Sebi asks 24 weak MFs to review work

The Securities and Exchange Board of India has asked 24 mutual funds, which have been 'performing unsatisfactorily', to review their work including investment strategies.

"The capital market regulator has asked MFs (which are not doing well) to review their performance and place the report before their board and trustees', Sebi chairman, D R Mehta, said releasing 'Mutual Fund Year Book-2000' in Bombay on Tuesday.

"Sebi has no intention to meddle with their working," he said adding, some of the poor performing funds have given negative returns of over 30 per cent.

Referring to the performance of Unit Trust of India schemes, including US-64, he said the problem was with the equity schemes, but the debt funds managed by UTI had provided better returns. "UTI is a powerful body and will be able to overcome the problems," Mehta said.

Most funds were following Sebi guidelines and 'had submitted to discipline that inspires investors confidence', the chairman said.

The net asset value of the equity funds were ruling low due to fall in the markets but the debt funds have done well with returns in the range of 10-11 per cent, Mehta added.

The asset management companies have raised net funds worth Rs 69.90 billion in the first quarter of this fiscal while the gross collection in April-June 2001 was about Rs 282 billion, Mehta added.

Mooting an idea for MFs to support investors' education, he said 'unclaimed dividend of Rs 5 billion lying with the mutual funds can be used for this purpose'.

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