Empowering Trustees: The Pillars of Mutual Fund Integrity

Sebi Chairman Tuhin Kanta Pandey urged mutual fund trustees to actively adopt early warning systems to detect and address irregularities, safeguarding investor interests. Emphasizing their crucial role, he highlighted the need for continuous learning, regulatory adherence, and proactive engagement in the expanding mutual fund landscape.

Sebi Chairman Tuhin Kanta Pandey has called on mutual fund trustees to strengthen early warning mechanisms to detect potential irregularities, thereby ensuring investor protection. Addressing a gathering at the Leadership Dialogue for Trustees of Mutual Funds, Pandey stressed that trustees serve as a pivotal line of defence in upholding the integrity of mutual fund systems and processes.

He urged trustees to be proactive rather than passive in implementing Sebi's reforms, emphasizing their empowered role to act decisively in the interest of investors. He described the trustees' role as fiduciary and moral, necessitating active participation and accountability in proposing practical safeguards and simplifications without compromising safety measures.

Pandey highlighted the importance of embracing new areas such as ESG investing and AI in mutual funds to maintain strategic oversight. He also spoke on the significance of recent regulatory measures aimed at improving trust and transparency, such as defining roles between trustees and AMC boards. Noting the exponential growth in the sector, Pandey underscored the evolving responsibilities of trustees amid increased investor participation.

(With inputs from agencies.)