SEBI, or the Securities and Exchange Board of India, plays a crucial role in regulating mutual funds and protecting investors’ interests in India.
As of 31 October 2024, the Indian mutual fund industry managed average assets worth ₹68,50,321 crore with more than 172 million folios, highlighting the rapid growth of mutual fund investments in the country.
To ensure investor safety and maintain transparency in the financial markets, SEBI creates rules, regulations, and compliance standards for mutual funds and Asset Management Companies (AMCs).
Some important SEBI regulations for mutual funds include:
Independent Trustees
Two-thirds of the directors of a trustee company must be independent to ensure better oversight and external control.
Independent AMC Directors
At least 50% of the directors of an Asset Management Company (AMC) must be independent.
Mandatory SEBI Registration
Every mutual fund must register with SEBI and obtain approval before launching any mutual fund scheme.
These regulations help improve transparency, accountability, and investor confidence in the mutual fund industry.
For more learning on mutual funds, visit our Mutual Fund Learning Platform, where you can explore 100+ questions and answers related to mutual funds, investing basics, SIPs, AMCs, SEBI regulations, and portfolio concepts.
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