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SEBI has asked AMFI that they should act like a self-regulatory organization (SRO) where they should be able to take action against their members if they find any wrongful practice, said Manoj Kumar, Executive Director, SEBI. He was speaking at the CII Mutual Fund Summit held recently in Mumbai.
Currently, AMFI is a trade body of the mutual fund companies.
Kumar said one of the key focus areas of SEBI is to encourage the industry to start regulating themselves. He said, “We have started extensive discussion with various AMFI committees and MF officials. We are telling AMFI that you are closer to the industry. We get secondary data and you get primary information and alerts. You are better placed to take cognizance of those alerts and take action.”
The ED that the market regulator wants AMFI and AMCs to monitor the entire activity of the MF industry on their own rather than SEBI coming into picture and taking some action.
Further, Kumar said that the market regulator is working on ‘MF Lite’ which is the new regulations for emerging MF players. MF Lite will give leeway to the new fund houses not to comply with all the regulations if they want to deal only with specific type of products like passive funds.
