SEBI may revisit its risk management guidelines in mutual funds.
Earlier, SEBI had asked AMFI to undertake a detailed study on risk management practices followed by fund houses. AMFI had appointed EY to give its recommendation for formulating a uniform risk management policy in mutual funds.
AMFI CEO C VR Rajendran said that they have received the EY recommendations last week. He said that AMFI’s valuation committee will look into these recommendations and may bring it up for discussion in the forthcoming board meeting. After the board approval, AMFI will give its recommendation to SEBI which will take a final call.
In its report, EY is said to have made certain recommendations to ensure a minimum standard of due diligence or risk management system for all fund houses in various areas like fund management, operations, customer service, marketing and distribution, disaster recovery and business contingency, etc.
SEBI had come out with risk management guidelines for mutual funds in 2002.
