SBI strike affects Mutual Fund market
New Delhi, Apr 9: The week-long strike at the State Bank of India, the country's biggest money lender, has had a crippling effect on the domestic mutual funds market.
Fidelity Mutual Fund has decided not to accept applications accompanied by the SBI instruments.
''In view of the indefinite strike called by the employees of the SBI, which is impacting the clearing of investors' instruments drawn on the bank, we will not be accepting purchase/subscription applications with effect from April 10,'' Fidelity said in a public notice.
Meanwhile, ABN AMRO Mutual Fund has extended the offer period of its new fund to April 12 from April 7.
''Applications for suscriptions to ABN AMRO Future Leaders Fund from investors/unitholders where the subscription is by way of the instruments drawn on State bank of India or through other locations where the bank is principal clearing agent, the investors are put to hardships and are losing an opportunity to invest in the Scheme,'' ABN AMRO said.
More than 200,000 employees are on indefinite strike around the country paralysing the bank's 9,000 branches.
Talks broke down last month with unions seeking a hike in the standard pension rate, which has remained at Rs 4,250 a month for the past decade.