NEW DELHI, Oct 15: Mutual fund industry body Amfi on Thursday said it has not sent any proposal to Sebi for launching a new benchmark index or capping any stock in the index.
It further said the industry will continue to adhere to Sebi’ guidance on the capping of a single stock.
Referring to a speculative report in a section of the media about Amfi/AMCs proposing to Sebi to launch a new benchmark index, the industry body in a statement clarified that “it has not written to Sebi proposing the launch of new index nor capping any stock in the index”.
Amfi said, whenever any mutual fund launches a scheme, the fund house chooses an appropriate benchmark index which reflects the composition of the scheme’s portfolio.
It further said undoubtedly there are challenges in performance measurement as indices do not have a cap on stock, whereas mutual fund schemes have a cap of 10 per cent on a stock.
“However this issue needs to be settled between fund houses and index calculating agencies. Globally, index calculating agencies do prepare customised indices which comply with investment restrictions of the fund,” it added.
All the 44 asset management companies (AMCs) that are registered with Sebi, are the members of the Association of Mutual Funds in India (Amfi) . (PTI)
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