As MIN deadline approaches MFs see fall in subscriptions

Talking on the extension of deadline for getting MIN, A.P Kurian, chairman, Association of Mutual Funds in India, said, “We are not refusing investments, we request investors to provide the documents required for MIN and will issue the MIN subsequently. This will go on as a continuous process for two to three weeks.”

But as of January 24, only 50,000 MINs have been issued, though the number of investors runs into millions. Going forward, more points of services (POS) will be added over the 250 already existing in 63 cities to fasten the process and widen the reach, Kurian added.

According to Uttam Agarwal, senior vice president, Bajaj Capita, “If the deadline is not extended for another one or two months we would definitely see a fall in investments.” The process for providing MIN is very slow and as of now out of 25 million folios in the mutual fund industry only 0.2 per cent MINs have been issued.

Meanwhile, AMCs are lending a helping hand by accepting investments along with the required details to obtain the MIN. “It’s a new and large process which will take time to settle down. People are apprehensive but they have no option but to abide by the regulators requirement. We are going full throttle in the process though from the industry perspective I would like the deadline to be extended,” said, Joydeep Bhattacharya, chief marketing officer, UTI Mutual Fund.

The failure in issuing MINS have led to many AMCs issuing MINs along with the designated POS in order to facilitate investors. Optimix issued 2,600 MINs on Tuesday and received applications for 6,600. “We have hired employees on contract basis and are issuing MINs free of cost, irrespective of the investor being our client or not,” said Ashvin Arora, managing director, Optimix.

While investors are holding on to their monies for now, given that the finance ministry is planning to introduce one number for all financial transactions, as reported in this newspaper, all this running around by industry, distributors and investors, seems a colossal waste of time and energy.