Sampada JS, CMR University School of Legal Studies
INTRODUCTION
Mutual funds are businesses that combine the funds of numerous investors and invest them in securities including stocks, bonds, and short-term loans. Unit Trust of India (UTI) launched India's first mutual fund in 1963. The Industrial Development Bank of India (IDBI) assumed management of the regulatory and administrative functions after UTI's delinking from the RBI in 1978. Public Sector Banks, Life Insurance Corporation of India (LIC), and General Insurance Corporation of India (GIC) established public sector mutual funds in 1987. In June 1987, SBI Mutual Fund became the first 'non-UTI' mutual fund. It was soon followed by Canbank Mutual Fund, Punjab National Bank Mutual Fund, Indian Bank Mutual Fund, Bank of India, and Bank of Baroda Mutual Fund.
While GIC had formed its mutual fund in December 1990, LIC had done so in June 1989. The MF sector managed 47,004 crores of assets as of the end of 1993. For all mutual funds, with the exception of UTI, the first set of SEBI Mutual Fund Regulations were established in 1993. The old Kothari Pioneer was the first private-sector Mutual Fund registered in July 1993, which has since amalgamated with Franklin Templeton MF. A new era in the Indian MF business began in 1993 with the arrival of private sector funds, providing Indian investors with a greater selection of MF products. Over the years, more and more international sponsors established mutual funds in India, increasing the number of MFs.
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