Loan racket won't shake investor confidence: A P Kurian

Mutual fund industry stalwart A P Kurian today said the housing finance racket is an aberration and it will not shake investor confidence.

Kurian sounded confident on investor sentiment even as the benchmark equity index Sensex shed over 550 points in three days since the racket was busted by CBI.

"I don't think investors' confidence is shaken. There is nothing like a scam. Whatever has happened is an aberration," Kurian, former chairman of industry body AMFI, told reporters on the sidelines of an Assocham mutual fund summit.

The racket has raised quite an uncertainty among market participants -- mirrored in the volatile stockmarkets.

The Bombay Stock Exchange (BSE) benchmark Sensex nosedived 553 points in the past three trading sessions.

Unearthed by the CBI on November 24, LIC Housing Finance CEO Ramachandran Nair and seven other senior bankers are alleged to have colluded with Mumbai-based private firm Money Matters for granting loans to corporates.

On the need of the hour for the mutual fund industry, he said that the sector requires a national policy framework.

"It is an investor centric industry. We need to have a framework of national policy. For example, there are tax breaks avialable... (and) there are different treatments. I think it is better to have a long term policy framework," he said.