Page 275 - DCOM304_INDIAN_FINANCIAL_SYSTEM

Indian Financial System

Notes 2. Tax efficient mutual fund aims to ......................... tax bills, such as keeping turnover levels
low or shying away from companies that provide dividends.
3. UTI Mutual Fund was created as a ......................... registered fund.

4. Unit Trust of India was created by the UTI Act passed by the Parliament in ...................... .
5. ......................... are the stocks from firms with relative low Price to Earning (P/E) Ratio,
usually pay good dividends.

6. Morgan Stanley is a worldwide financial services company and it's leading in the market
in ........................., ......................... and credit services.



Caselet SEBI Favours Self-regulation for Mutual Funds

T self-regulatory organisation (SRO) for the mutual fund industry.
he Securities and Exchange Board of India (SEBI) on Wednesday mooted the idea of

Under the proposed plan, the Association of Mutual Funds in India (AMFI) would act as
the SRO with parts of the powers with SEBI being delegated to the apex body of the mutual
fund industry.
“Idea of SRO would help and support SEBI better in regulating the mutual funds,” the SEBI
Chairman, Mr G.N. Bajpai, said at a function organised to release the Hindi edition of the
AMFI workbook and also the launch of the certification course on the e-learning portal of
NSE.IT.
He said this would help the mutual funds to regulate themselves in a better way.

Currently the proposal was still in the conceptual stage and details would be known after
consulting with AMFI and mutual funds, he said adding that the delegation of powers
would be in phases.

The SEBI Chairman also said the market regulator was also looking at the replacement of
external auditors of asset management companies of mutual funds in the wake of
international accounting scandals.
Mr Bajpai suggested that mutual funds should expand the distribution network to small
towns and for this they should groom their distributors. He also said that mutual funds
should bring professionalism through the AMFI certification programme.
On the suggestion from the industry to allow them to manage pension funds, Mr Bajpai
said he would discuss the matter with the Government.

Source: http://www.thehindubusinessline.in



Case Study Mutual Funds Turning to Capital Protection Funds

Equity market's volatility pushes investors to other schemes.
While the equity market is rather unpredictable at this time, debt and money markets
have become a more attractive proposition for investors.
Contd...

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