HN Sinor, former ICICI Bank joint managing director and CEO of Indian Banks? Association, recently took over as CEO of trade body, Association of Mutual Funds in India (Amfi). From 90-day plans to setting targets of 100 investor programmes a year, he is inculcating a corporate culture in running of Amfi. His immediate priority is to address grievances of small investors, promote financial literacy, while working in close coordination with market regulator Sebi. In an exclusive interview with Chirag Madia, he speaks about his gameplan. Excerpts:

What are your immediate priorities?

My main focus will be to work towards grievances of small investors, improve financial literacy as well as work in close coordination with the regulator. At ICICI Bank, we used to have a 90-day rule that whatever assignment you take up, in 90 days it should be at the ground level. That?s what is required here. However, areas of concern remain, especially in regard to mis-selling of products to small investors. Also, Amfi is not a self regulatory organisation (SRO) and I don?t expect even Amfi to become an SRO over a period of time. So, we will have to look at the regulator to regulate these areas. The challenge for us is to look at interests of both trade members and stake holders.

In the last 12-15 years, mutual funds industry has developed considerably with 45 million retail mutual fund investors in the country today. Mutual fund products are also stacking as a good alternative investment avenue. Some of the best practices have been introduced in the industry, while multiple committees are working on consumer awareness programmes and their grievances. Things are getting done ?without much of a noise ?and in the right direction.

How are you planning to promote investor awareness?

Almost two-third of the money is set aside for investor awareness programmes. Amfi has a corpus of around Rs 9 crore. When I inquired how many investor awareness programmes are conducted, the numbers were not so encouraging. I would put a target of around 100 programmes in a year, every week two programme across the country. The data is being compiled on the geographical distribution of retail investors; once we get it we will able to point which area needs to be looked on.

The ban on entry load in August last year has rocked the distribution business of the MF industry. How do you think the industry will tackle it?

While it has definitely hurt the industry, I feel players are working around it. For instance, most of the distributors are getting into the advisory model (and getting paid for these services). While introducing this regulation, Sebi could have given more time to the industry; a time frame of say 12-18 months. The ban on entry load had created some disturbance in the mutual fund industry, mainly on the retail side.

Mutual funds are increasingly getting money from corporates (and not retail)?

There are actually over 45 million small investors, constituting over 23% of AUMs, which is a good number. And the total assets under management are over 7.5 lakh crore. While corporates are investing in various liquid schemes, 23% retail component is also not bad.

What steps will Amfi take to promote deeper penetration of MFs in rural and semi-rural areas.

Mutual funds are trying to reach out to rural areas and as competition intensify, we expect more players jumping the bandwagon.

Could we expect hard negotiations with Sebi?

I would not know whether I would have my way with Sebi, but I will only say that, some of my friends are sitting there including chairman, C B Bhave. We worked together (Tarapore Committee) and I think our interest are similar. He is also very much concerned on the small investor?s side as I am. Together we will be able to do more work.