Strict action will be taken on selling mutual fund scheme by giving false information, SEBI gave these instructions
Small investors Mutual funds between them have become increasingly popular. The reason for this is the strong returns on investment. However, there are many reports that some advisors are selling wrong schemes by giving false information to investors. In view of this, SEBI has now decided to take strict steps. Sibi chief Tuhin Kant Pandey on Wednesday appealed to companies associated with portfolio management services (PMS) to adopt a digital solution. He said that if the PMS industry is to remain competitive and reliable, it is necessary to modernize aspects like appointment, reporting and customer engagement through digital medium.
Speaking at the annual conference of APMI (Association of Portfolio Managers in India), Pandey also emphasized that strict action should be taken against the misleading claims being made by some registered portfolio managers. He urged the industry body to take concrete steps in this direction to maintain the trust of investors and promote transparency. According to SEBI chief, digital changes are not only necessary for the portfolio management industry, but also the only way to remain in competition.
Mutual fund industry at a significant turn
He said that the PMS industry is at a significant turn, “You have a strong position, a flexible regulatory structure, active industry connecting through the association and the growing group of knowledgeable investors.” Pandey said that the association and the industry should curb the misleading claims being made by some registered portfolio managers. He further said, “The claims of such exaggerated performances reduce confidence and can prevent the growth of this industry.”
Do not see as a post -fraud.
Tuhin Kant Pandey, head of capital market regulator SEBI, on Friday urged to develop the ability to detect discrepancies from chartered accounts on Friday. He clarified that forensic audit should not be seen only as a post -fraud. Pandey said at a program by the Indian Surprise Accounts Institute (ICAI) here that the collective ability to estimate the risks and quickly detect the discrepancies will decide the future of financial administration. He said, “Forensic audit should not only be seen as a post -fraud measure. Rather, it needs to be developed as an active discipline in the structure of corporate controls.
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