AMCs will be responsible for compliance of overseas agents
Aug 23 2013 , New Delhi
AMCs would be responsible for the compliance of overseas distributors, in the absence of an Amfi registration, according to a circular issued by Association of Mutual Funds in India.
"AMCs are required to ensure compliance by the overseas distributors with the extant laws, rules and regulations of jurisdictions where they carry out their operations in the capacity of distributors while empanelling them, the circular said.
"It is clarified that since Amfi registration is not required by Sebi. Amfi would not be carrying out due diligence on these distributors on behalf of the mutual fund industry. AMCs will be fully responsible for any Sebi-related requirements on these distributors," it added.
Foreign distributors are not required to obtain a certificate from National Institute of Securities Markets (NISM). An NISM certification qualifies a distributor or an advisor to sell MF products.
Earlier in July last year, Sebi had exempted foreign distributors from obtaining NISM certification. Amfi registration was also not required to comply with know-your- distributor process.