Funds back executives named by CBI in KP scam

Former SBI Mutual Fund executives, Ajay Bodke and Rajat Jain, may come under pressure to quit from their respective positions at Stanchart Mutual Fund and Principal PNB Mutual Fund after the Central Bureau of Investigation (CBI) named the two among others in the Ketan Parekh scam of 2000.

Spokespersons of the fund houses said "there are no pressure on them (to quit)" and that they have been just told to "respond" to CBI in the
matter relating to their investment decisions at SBI Mutual Fund during
2000.

A Stanchart spokeman said this as a personal matter and there were no
specific allegations against Bodke. "We are monitoring the situation and
take appropriate action."

But sources said that the resignation of Sandip Sabharwal from Lotus AMC, after the CBI report, was likely to serve as a benchmark for the Stanchart and Principal PNB. Sabarwal, ex-chief of equity market at SBI MF, quit recently citing "personal reasons" from the about-to-be-launched Lotus AMC.Though 30 persons have been named by the CBI, 27 have already retired.

Bodke is currently serving as senior fund manager (equities) at Stanchart
while Jain is chief investment officer (CIO) of Principal PNB.