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SEBI has directed AMCs to constitute a ‘Unit Holder Protection Committee’ (UHPC).
This committee has an independent review mechanism that will look at decisions of AMCs from unitholders’ interests. Also, the committee has to protect interest of mutual fund investors, redress their grievances and spread awareness and education.
Further, the committee has to ensure that AMCs adopt healthy market practices in terms of investment, sales, marketing, advertisement and investor awareness.
Here are other key roles of the UHPC:
- Review compliance relating to protection of interests of unitholders
- Keep MF investors educated and informed
- Review of unit holder compliance and grievances handling mechanism
- Review grievances on instances of mis-selling and frauds
- Review measures and steps to reduce unit holder complaints
