Amfi to nurture nascent Pak MF industry

The Association of Mutual Funds of India (Amfi), the trade body representing the over Rs 1,35,000 crore industry, has offered Pakistan its help for developing and strengthening the capital market in that country.

"We have broken the ice. We are very much interested in cooperating with them (Pakistan's mutual fund industry)," said A P Kurian, chairman, Amfi, said here.

The move comes close on the heels of the two sides meeting at the recently held Asia Oceania regional meeting of the global investment fund associations here.

Though the meeting became a platform, Kurian said further nitty-gritties will have to be sorted out and on the areas in which cooperation was required and in this regard, a Pakistan delegation is expected to visit India soon.

"We are expecting a delegation from Pakistan by May-June and only after that meeting, any concrete steps could be spelt out," he said, adding that depending on the meeting and other requirements, an Amfi delegation would also visit there.

Indications are that Amfi would help Pakistan's mutual fund association in strengthening their practices including disclosures and evolving a syllabus for starting registration of brokers in that country.

Indian mutual fund industry is well-regulated and India had the capabilities in terms of standards set by the sector, which was on par with international norms, he said.

Moreover, Amfi has put in place a mandatory training and registration for those wishing to pursue a career as brokers in the mutual fund segment.

Asked whether Pakistan's mutual fund industry would be able to invest in the Indian capital markets, Kurian said these issues would be taken up at the meeting and as far as allowing them was concerned it was the prerogative of the regulator and the government.

Whenever a developing country wanted to bring in measures either to regulate or streamline its mutual fund industry, the trend has been to follow the developed markets such as the US and UK and this need not fit well with the respective domestic situation, Amfi sources said reasoning for the move.

Of late, India has figured prominently on the world map due to far-reaching recommendations made by Amfi, especially on 100 per cent disclosure on monthly basis and creating a benchmark for the non-equity schemes to assess performance, they said, adding that India could play a big advisory role at a globally competitive price.

The move by Amfi comes in the backdrop of improving bilateral trade relations between the two countries and India had already offered its help to Pakistan in coming up with a social security scheme for the unorganised sector workers in that country.