20 years events that shaped private mutual funds industry

1993

• Sebi MF Regulations 1993 formulated
• First private sector MF Kothari Pioneer registered in July 93
• First open-ended scheme launched by a private sector player (Kothari )

1994

• Morgan Stanley launched a fund on a "first-come, first -serve" basis leading to unprecedented response from investors.
  Also, for the first time, lead managers were appointed for a mutual fund scheme

1995

• Reliance Growth and Reliance Vision were the first schemes launched by an MF with "no load"
• Incorporation of AMFI
• First instance of a promoter misusing an MF comes to light. CRB mutual fund barred from launching new products

1996

• Sebi MF Regulations substituted by a more comprehensive regulation, that is, Sebi MF Regulations, 1996

1997

• First merger in the industry- HB Asset Management merged with Credit Capital Asset Management

1999

• Union Budget 1999 made dividends tax-free in the hands of investors

2001

• First ETF launched by Benchmark MF

2002

• Registration of MF distributors made compulsory by AMFI

2003

• UTI Act 1963 repelled and consequently UTI was bifurcated into two parts

2006

• Sebi disallows open-ended funds from charging initial issue expenses to investors

2007

• First gold ETF launched

2008

• Sebi disallows amortisation of initial issue expenses in close-ended funds ; end of the NFO saga
• KYC introduced for mutual fund investors investing more than Rs 50,000

2009

• Sebi bans entry load on MF investments
• Sebi introduces KYD for distributors

2012

• Sebi implements steps to reenergise the MF industry- look beyond top 15 cities, single plan and additional expenses can be charged for monies mobilised beyond top 15 cities