OCH/COMM/2007/101911
August 22, 2007
The Editor
The Hindu
Kasturi Buildings
859 & 860, Anna Salai
Chennai – 600 002
Dear Sir,
Sub: Clarification
This is with reference to the Hyderabad datelined news item “SEBI moots self-regulator for financial advisors” published in The Hindu, Chennai Edition on August 17, 2007. In the news item it has inter-alia been written; “Demutualisation: On demutualisation (regulation of mutual funds), the SEBI Chairman said the asset management companies were licensed and registered and ‘we are working on regulating of distributors who are not being regulated so far’.” In this connection we would like to clarify as follows:
“Demutualisation and regulation of mutual funds are two separate issues. Demutualisation does not mean regulation of mutual funds. Your correspondent’s confusion on demutualisation has been attributed to Chairman, SEBI. What Chairman, SEBI said was that SEBI was working on regulating the distributors of mutual funds. “
It is requested that the above clarification may be published in your newspaper to put the record straight.
Thanking you,
Yours faithfully,
for Securities and Exchange Board of India
(N. Hariharan)
Dy. General Manager (Communications)