MF trustees must ensure early warning systems: Sebi chief

Tuhin Kanta Pandey, chairman of the Securities and Exchange Board of India (Sebi), on Monday urged mutual fund trustees to implement early warning systems that can detect anomalies and trigger timely interventions.

- KHUSHBOO TIWARI

He also called for their active engagement in establishing guardrails to safeguard the industry and investors.

Speaking at the Leadership Dialogue for Trustees of Mutual Fund, Pandey described trustees as the first line of defence in ensuring the integrity of systems and processes related to valuation practices and risk management.

“When needed, trustees are empowered to act — to question, to escalate, and, if necessary, to intervene. This authority carries with it the moral duty to act decisively and fearlessly, to protect the interests of investors,” said Pandey.