PowerMF Blog – Empower Yourself

The last 3 years has probably seen the most action from SEBI in the Mutual Fund space, probably as much if not more than when the Industry was opened up. We have seen action by the regulator across various activities of the Fund commencing from Distribution to Valuation, Fund Management etc.

Having acted on all these areas and making people who run the business responsible for a large number of activities, SEBI has taken the most important and critical step of arming the Trustees with the knowledge and understanding of their role.

As all of us know, the funds invested in the mutual fund scheme is managed on trust and hence the role of the trustees is extremely important. The Industry on its part have been able to attract the ideal profile of respected individuals from across various walks of life to become trustees. This enables ‘faith’ on the trustees. However, with so much of change in the industry and its regulation over years, there is a need for the trustees to clearly understand their roles and responsibilities in order to fulfill their role effectively.

It is in this background that the action of the regulator to get the trustees and independent directors of various fund houses through workshops (See Link: http://www.livemint.com/2011/02/15213117/Sebi-puts-mutual-fund-trustees.html) is a welcome move.

Sure, that we are moving in the right direction to not only have a well regulated environment for mutual funds but also a well empowered people who know their roles and responsibilities to run the same.

Fundu Vishy

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