The mutual funds in India have always been thumping their chest about how transparent their dealings are. Here is an example to the contrary. I switched between two funds in Birla Sunlife and the AMC took all of seven days to allot units in the fund I switched into. Even considering the fact that the fund I switched out of is an international fund, I found it very difficult to digest that it takes seven business days, in this era of online trading, wire transfers, internet and RTGS, to realise funds from sale of securities.
So I requested for a bank reconciliation statement to verify whether it did really take seven days but Birla AMC refused my request without assigning any reason. I complained to SEBI but the AMC merely repeats what it has been saying all along- that the allotment was done within the regulqtory time.
The truth is that SEBI has not regulated allotment at all and has left it to the AMC to allot on the day the funds are made available to it. Unfortunately, without directing the AMC to furnsh proof, SEBI accepts such inane replies and closes the case.
Can anyone call this being transparent? Why should Birla AMC refuse my request unless they have something to hide! Yes, they are as transparent as a piece of tintec glass!