BUSINESS

Events that shaped private mutual funds industry

By BS Bureau
June 26, 2013 14:57 IST

Here's a look at the major milestones in the history of the mutual industry.

1993

Sebi MF Regulations 1993 formulated

First private sector MF Kothari Pioneer registered in July 93

First open-ended scheme launched by a private sector player (Kothari )

1994

 Morgan Stanley launched a fund on a “first-come, first -serve” basis leading to unprecedented response from investors. 

Also, for the first time, lead managers were appointed for a mutual fund scheme

1995

Reliance Growth and Reliance Vision were the first  schemes launched by an MF with “no load”

Incorporation of AMFI

First instance of a promoter misusing an MF comes to light. CRB mutual fund barred from launching new products 

1996

Sebi MF Regulations substituted by a more comprehensive regulation, that is, Sebi MF Regulations, 1996

1997

First merger in the industry- HB Asset Management  merged with Credit Capital Asset Management

1999

Union Budget 1999 made dividends tax-free in the  hands of investors

2001

First ETF launched by Benchmark MF

2002

Registration of MF distributors made compulsory by  AMFI 

2003

UTI Act 1963 repelled and consequently UTI was bifurcated into two parts

2006

Sebi disallows open-ended funds from  charging initial issue expenses to investors

2007

First gold ETF launched

2008

Sebi disallows amortisation of initial issue expenses in close-ended funds ; end of the NFO saga

KYC introduced for mutual fund investors investing more than Rs 50,000

2009

Sebi bans entry load on MF investments

Sebi introduces KYD for distributors

2012

Sebi implements steps to reenergise the MF industry- look beyond top 15 cities, single plan and additional expenses can be charged  for monies mobilised beyond top 15 cities

BS Bureau
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