Amfi knocks Sebi on mandatory certification for new MF agents

Mukta Malhotra

Mumbai, Aug 14: Selling mutual funds products may not be a free-for-all easy game as is the case currently. The Association of Mutual Funds in India (Amfi) has approached the Securities and Exchange Board of India (Sebi) to make it mandatory for new persons being recruited as agents and distributors of mutual funds products to pass the certification programmme conducted by Amfi.

Currently, the mutual funds products are being offered/sold to investors by all and sundry, including agents and distributors of mutual funds. Given the complexities of investing in the stock market through mutual funds, Amfi feels it would be better for agents and distributors to undergo a certification programme before taking up the fund product-selling exercise. In a recent meeting with Sebi on July 27, the Amfi board had a detailed discussion with Sebi chairman DR Mehta, executive director RM Joshi and other Sebi officials on several matters concerning the mutual fund industry wherein Amfi requested Sebi to make it mandatory with immediate effect atleast for new people to be recruited as distributors and agents to pass the Amfi certification program.

Speaking to The Financial Express, Amfi chairman AP Kurian said: "We have urged Sebi on making the Amfi certification course mandatory, to which Sebi had shown a positive response. Amfi has been pushing to make passing the certification program mandatory for all distributors and agents."

The UTI Institute of Capital Markets (UTIICM) conducts The Committee on Amfi certification programmme for intermediaries and employees (reconstituted with Nikhil Johri of Alliance Capital as chairman) and has almost completed the work of revising and updating the Amfi workbook. UTI has recently adopted a policy to enroll new agent distributors only if they pass the certification test.

Even mutual funds like Kotak Mahindra Mutual Fund have worked out an online simulated test to enable interested candidates to assess themselves how well they have prepared for the certification programme.

Meanwhile, the Amfi certification programme has been attended by more than 1,600 distributors and 1,700 employees in the mutual fund industry. Of this, around 65 per cent have passed the test, said Mr Kurien.

"We have conducted 118 training sessions in 13 cities," said Mr Kurien. Further, Amfi conducts training sessions is smaller cities like Indore, Bhopal, Nagpur and Patna, where Internet facility is not available.