AMFI classification: Jio Financial makes it to large cap. What is AMFI and how it is work?

JIO Financial Services

Jio Financial makes it to large cap.

 

The Association of Mutual Funds of India (AMFI) on January 4 announced the new market categorisation list for H1 CY24. Large cap threshold now stands at Rs 67,000 crore, up from Rs 49,700 crore in June 2023. Midcap cut-off has risen to Rs 22,000 crore from Rs 17,400 crore, Nuvama Institutional Equities has said.

The changes make Jio financial services officially a large cap stock. As per AMFI’s definition, large caps are the 1-100 companies based on full market cap, midcaps are 101-250 and small caps are 251 and on.

What is AMFI?

  • Association of Mutual Funds in India (AMFI) is a non-profit industry body of the Asset Management Companies (AMCs) of all Mutual Funds in India that are registered with Securities and Exchange Board of India (SEBI).
  • AMFI was incorporated on August 22, 1995 under section 25 of the Companies Act, 1956 (corresponding Section 8 of the new Companies Act, 2013), as a non-profit organisation.
  • AMFI is dedicated to developing the Indian Mutual Fund industry on professional, healthy and ethical lines, and to enhance and maintain standards in all areas in the best interest of investors and other stake holders.
  • The ‘Mutual Funds Sahi Hai’ campaign, a nationwide investor awareness media outreach in various languages initiated by AMFI in 2017 under SEBI’s guidance, is one of the key efforts of AMFI to spread awareness about mutual funds as a distinct asset class.

The role of AMFI:-

  1. Address the issues and challenges concerning the mutual fund industry to facilitate ease of doing business for its members, unitholders and various stakeholders.
  2.  Advocacy with the SEBI/ Reserve bank of India, Government of India etc. with regard to the issues and policy matters concerning the mutual fund industry.
  3. Introduce best practices and standardised operational guidelines for being uniformly followed by all AMCs.
  4. Disseminate important information pertaining to mutual funds on AMFI’s website, such as displaying daily NAVs of all MF schemes , performance of all MF Schemes and other useful and informational data pertaining to MF Industry.
  5. Creating awareness about mutual funds through mass media.

Objective of AMFI:-

  • To define and maintain high professional and ethical standards in all areas of operation of mutual fund industry.
  • To recommend and promote best business practices and code of conduct to be followed by members and others engaged in the activities of mutual fund and asset management including agencies connected or involved in the field of capital markets and financial services.
  • To interact with the Securities and Exchange Board of India (SEBI) and to represent to SEBI on all matters concerning the mutual fund industry.
  • To represent to the Government, Reserve Bank of India and other bodies on all matters relating to the Mutual Fund Industry.
  • To undertake nation wide investor awareness programme so as to promote proper understanding of the concept and working of mutual funds.
  • To disseminate information on Mutual Fund Industry and to undertake studies and research directly and/or in association with other bodies.
  • To take regulate conduct of distributors including disciplinary actions (cancellation of ARN) for violations of Code of Conduct.
  • To protect the interest of investors/unit holders

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