Safeguarding Investor Confidence: Navigating Risks in Mutual Funds
Amarjeet Singh from SEBI highlighted operational risks threatening the mutual fund industry, such as fraudulent redemptions, urging asset management companies to enhance vigilance. He stressed maintaining governance, ethical conduct, and transparency, advocating for responsible growth and innovation to inspire investor trust while ensuring long-term value creation over short-term gains.
- Country:
- India
Sebi Whole Time Member Amarjeet Singh has issued a warning to the mutual fund sector about operational risks, emphasizing the growing threat posed by fraudulent redemptions by imposters. He explained that these risks could erode investor confidence if not addressed with urgency by asset management companies.
During an event by the Association of Mutual Funds in India, Singh advocated for maintaining a culture of transparency, governance, and ethical conduct within the industry. He highlighted the importance of vigilance among asset managers to promptly recognize and monitor new fraud patterns, thereby protecting investors' interests.
Singh also emphasized the need for a balance between responsible growth and innovation, highlighting opportunities for expansion through new products and digital advances. He cautioned against reckless scaling and underscored that self-regulation and adherence to ethical standards are essential to fostering investor trust and ensuring sustainable industry growth.
Google News