However, there is no such restriction on mutual fund investments.
As a relationship manager, he had access to the Suris' portfolio and knew exactly when they had investible surplus.
However, experts feel this is needed in the larger interest of investors. This was possible because cheques or bank drafts for investments in mutual funds are made out in the name of the scheme and can be used by anyone. Clearly, the scam has been aided by the rule that allows thirdparty cheques. While any individual above the age of 18 years can act as a mutual fund distributor, most corporate entities look for graduates with basic knowledge in mutual funds. Fund houses will start rejecting third-party payments from November 15, to check fraudulent activities by mutual fund agents and distributors. E-mails sent by MONEY TODAY to Sebi officials were not answered. Apart from mutual funds, a host of financial transaction allows one to use third-party cheques. Till four months ago, kulbhushan kumar suri and his wife vinod were leading a retired life everyone dreams of. He also had their bank details, which he carefully mentioned in the fake receipts. Please sign in or register to comment. Third-Party Product # 3. Kapoor Investment & Financial Consultants. © 2020 citywireamericas.com.
Apart from the commission, the banks selling mutual fund get an annual fee from the mutual fund company, as long as the investor holds the relative mutual fund units. they alternated between a comfortable villa in leafy rishikesh and their delhi residence. Distributors fear that a ban will further constrict the flow of investments in mutual funds. it's an anomaly that needs to be corrected by Sebi-now. Chilean asset manager Quest Capital, the product of the recent merger of two local firms, is planning to launch a series of local mutual funds and enter the third-party fund distribution business.Last Friday, asset manager CHG completed its merger with local advisory and wealth management firm Quest Capital to create a group with roughly $450 million in total assets. Helping Kumar in his devious plan was a Securities and Exchange Board of India (Sebi) rule that allows third-party cheques for investments in funds.
Suris may not be the only victims of such fraud or Kumar the only perpetrator. Whenever their deposits or bonds matured, he would approach them with a proposal to invest in a fund. However, no criminal complaint has been filed against Kumar by any of the three mutual funds for fraudulent use of their stationery. "Banning thirdparty cheques would help prevent such frauds, but we also need to ascertain the possible adverse impact on investors," says Virendra Jain, investor rights activist and founder of the Midas Touch Investors' Association.
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"It is an anomaly that third-party investments are banned in one segment of the capital market and allowed in another," says Gajendra Nagpal, CEO of Unicon Financial Intermediaries. they had no financial worries because their investments were in safe hands.
Kumar would apparently withdraw the investments a week or so later and pocket the redemption proceeds.
Originally focused on India and Europe, Anchor International has expanded its reach in partnering with fund managers in the …
The new company, however, is open to expanding and diversifying -- as long as it happens organically.‘The idea is to grow, no doubt,’ Gana said. We use cookies to give you the best experience on our website.
PTI New Delhi, September 20, 2010
Our Distribution Services team acts as an extension of your business to support your distribution strategy while ensuring compliance on the part of third-party representatives SS&C | ALPS offers a suite of distribution-related solutions for mutual fund, interval fund,private fund and ETF product sponsors. ‘Quest used to buy and invest in CHG funds, so they got to know us and to know that we did this well and that gave them confidence.
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using a mix of subterfuge, forgery and loopholes in mutual fund rules, kumar allegedly managed to defraud the couple of rs 82.8 lakh invested in various schemes of three mutual funds. We could launch 30 different funds, but we’re going to grow as we find opportunities to develop that area.’David Gutierrez connected with the leaders of three Uruguayan firms from the comfort of his home office to hear about their growth plans and the companies they wish to emulate. This move was meant to prevent benami investments and money laundering.
When was the last time you checked whether your SIP cheque has been correctly credited and recorded in your mutual fund statement? these turned out to be fake - colour prints taken on an inkjet printer. Indeed, if the watchdog is so particular about checking the identity of every mutual fund investor to prevent pseudo investments and money laundering, it should also ask fund houses to stop accepting third-party cheques.