Listen to this article
Ananta Barua, Whole Time Member, SEBI feels that compliance can take care of violations like mis-selling, insider trading and front running in mutual funds.
Barua was speaking at the first Moneycontrol Mutual Fund Summit held recently in Mumbai. He said that the industry sees compliance as burden but it as an integral part of the mutual fund business. He said, “If there is proper compliance with all rules and regulations, it reduces chances of violation like mis-selling, front running and insider trading.”
Barua also gave a gist of important SEBI regulations that has shaped the MF industry. He told that SEBI’s key focus area revolves around these seven pillars:
- Improving disclosure or transparency
- Offering ease of investments
- Keeping cost of investment less
- Diversifying of risks
- Increasing liquidity
- Preventing mis-selling
- Avoiding conflict of interest
- Aligning incentives
Barua further said that mutual fund companies should play a fiduciary role and should not gamble with investors money.
