Mumbai, June 26: The Securities and Exchange Board of India (Sebi) has pulled up some mutual funds for having only few investors in some of their schemes, thus virtually turning them into a portfolio management scheme. The regulator based on the routine review of MF record has found instances where sometimes only one-two investors exist in the scheme, which runs against the principles of a mutual fund, Sebi sources said on Wednesday.
This issue was likely to be discussed with the chief executives of MFs at a meeting slated for middle of next month, sources said.
Association of Mutual Funds in India chairman A Kurien when contacted said he was not aware of such a communication but said there are some schemes of MFs, which have very few investors, primarily institutional players. Bureau Report