SEBI has issued a consultation paper for tightening the responsibilities of mutual fund Trustees and is now planning a forensic audit of all 44 mutual funds in the wake of the unfortunate events at Franklin Templeton India Mutual Fund and Axis Mutual Fund in the last 2-3 years. The audit is expected to focus on MFs’ due diligence with respect to investments in illiquid securities, management of various risks including concentration, downgrades, early warning signals and liquidity issues of the securities in the portfolio, besides valuation practices and investment strategy of various schemes. SEBI has also proposed Asset Management Companies (AMCs) to set up a “Unit Holder Protection Committee” across all products and services to independently review AMC decisions from unit-holders’ interest perspective.
SEBI to Conduct Forensic Audit of Mutual Funds
SEBI is planning a forensic audit of all 44 mutual funds in the wake of the unfortunate events at Franklin Templeton India Mutual Fund and Axis Mutual Fund in the last 2-3 years. The audit is expected to focus on MFs’ due diligence with respect to investments in illiquid securities, management of various risks and liquidity issues of the securities in the portfolio.
Latest from Blog
Doctors in the Upstate are conducting clinical trials on a cancer immunology vaccine that has the
A tiny fragment from the most dangerous asteroid in the solar system has arrived in the
Scientists have discovered a planet that is way too big for its tiny star. Its existence
No. 4 Florida State is aiming to win their 16th conference championship, taking on No. 14
Prince Harry and Meghan have been left off the guest list for the high society wedding
