Page 18 - Banking Finance November 2020

MUTUAL FUND

Swatantra Kumar is sharp, intelligent allowed to become self-clearing mem- unit holders; and will act fairly and deal
and amiable. He breaks down complex bers to clear and settle trades in the with market participants in a consis-
investment topics into small and simple debt segment on behalf of its mutual tent and transparent manner.
explanations, thereby making the mat- fund schemes. The move comes after
Also, they will have to identify existing
ter easily consumable. He believes that Sebi board approved a proposal in this or potential conflicts of interest as per
with access to financial knowledge, regard in September. In a notification their institutions policies and address
investors can enhance their financial dated October 29, Sebi said that chief
the same and disclose all interests in
quotient and gain from informed finan- executive officer (CEO) of the AMC will
securities as required by statutory re-
cial decisions. be responsible to ensure that the code quirements. Further, they are not al-
of conduct is followed by fund manag-
Mr Imtaiyazur Rahman, CEO, UTI AMC lowed to carry out any transaction on
ers and dealers.
said, "We at UTI MF are proud of our behalf of a fund with any counter party
decade old investor education initiative It, further, said any breach of the code who is an associate of the sponsor/
- 'UTI Swatantra'. Our underlying ob- of conduct will be brought to the at- AMC/fund manager/dealer/CEO "un-
jective has always been to promote tention of the board of directors of the less such transaction is carried out on
investor awareness and spread finan- AMC and trustees. Currently, mutual arm's length basis on terms and at a
cial literacy amongst the people of the fund norms require AMCs and trustees price consistent with best execution
country, for bringing in financial inclu- to follow a code of conduct. Also, the standards and at a commission rate no
sion. We are confident that Swatantra CEO is entrusted with several respon- higher than customary institutional
Kumar on Quora will help us in fulfill- sibilities. The fund managers and deal- rates."
ing these fundamental objectives". ers will abide by the code of conduct They are not supposed to "indulge in
and submit a quarterly self-certifica-
UTI Swatantra aims at increasing fi- any unethical business activities or pro-
nancial literacy in the country so that tion to the trustees that they have fessional misconduct involving dishon-
people are better equipped to achieve complied with the code of conduct or esty, fraud or deceit or commit any act
list exceptions, if any.
their financial goals and, in turn, ca- that could damage the reputation of
pable of living a better life. It curates Fund managers will have an appropri- the organisation or the mutual fund
simple, engaging, youthful and byte- ate and adequate basis for investment industry". They cannot offer or accept
sized content in various formats such decision and will be responsible for in- any inducement in connection with the
as videos, articles, infographics, comic vestment in the funds managed by affairs of managing the funds of
strips, quizzes, etc. The same is made them. Further, fund managers will unitholders which is likely to conflict
available through different platforms record in writing, the decision of buy- with the duties owed to the
such as print, TV, radio, and digital. ing or selling securities together with unitholders and not receive any gift or
With such a wide audience base, the the detailed justifications for such de- entertainment which is not in adher-
initiative has successfully reached out cisions and not indulge in any act which ence of the policy of the AMC framed
to about 135.66 million* people spread results in artificial window dressing of in this regard.
across more than 74 cities. the net asset value (NAV).
With regard to communication and
Sebi said dealers will have to ensure disclosure, Sebi said fund managers
SEBI introduces code of that orders are executed on the best and dealers will always have to com-
conduct for mutual fund available terms, taking into account municate in unambiguous, transparent
the relevant market at the time for and accurate manner and conduct all
managers transactions of the kind and size con- communication during market hours
Sebi has introduced a code of conduct cerned to achieve the objectives of the through recorded modes and channels
for fund managers and dealers of scheme and in the best interest of all only. They will have to provide appro-
AMCs in order to make them more the unit holders. Fund managers and priate inputs to the valuation agencies
accountable. In addition, asset man- dealers will have to ensure that invest- and highlight any material deviation.
agement companies (AMCs) have been ments are made in the interest of the Further, they will not disclose any ma-

18 | 2020 | NOVEMBER | BANKING FINANCE