Mukta Malhotra

Mumbai, June 11: The US-aided project on Financial Institutions Reform and Expansion (FIRE) would once again be active in India to make suggestions for improving the domestic mutual funds industry and the capital market in particular. The FIRE team is said to be back and its members are scheduled to meet the Association of Mutual Funds in India (Amfi) chairman AP Kurian and other board members this week for its next project.

FIRE has already set-up a team for its project. Management consultants PricewaterhouseCoopers has been mandated to implement the project. The US aid project conducts studies on capital markets and financial sector reforms. The FIRE project was withdrawn in mid-1998 following the USA deciding to impose sanctions on India.

When contacted by The Financial Express, Amfi chairman AP Kurian said, “We would be working with FIRE again. This week we would be having a preliminary discussion with FIRE project leaders.” The discussion with Amfi would be on issues relating to the mutual funds industry and mutual funds-related capital market developments that would have to be jointly undertaken for a study. It would also deal with the projects that need to be carried out.

“The areas that would be taken up for study or for conducting project would be other than the ones taken up by different working groups of Amfi,” said Mr Kurian.

FIRE had earlier closely worked with Amfi till 1998 before the US sanctions on India. It had assisted the Amfi in conducting a number of studies which included putting up its Investors Guide, Code of Ethics booklet and Compliance Manual. FIRE had also conducted seminars for the industry and had also led a delegation to the US to study the mutual fund industry during 1997-98.