Sebi chief asks MF trustees to build guardrails for industry, investors

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

- ENS ECONOMIC BUREAU @ Mumbai

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

Addressing the mutual fund trustees, Pandey described trustees as the first-line of defence in ensuring the integrity of the systems and the 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.