Sebi issued 47 warning letters to mutual fund houses in 2018-19

Sebi issued 47 warning letters to mutual fund houses in the last financial year, and the watchdog in consultation with the central government is examining various issues related to mutual funds on a continuous basis.

In a written reply to the Lok Sabha, Union minister Anurag Thakur said that Sebi, in its regulatory oversight, has noticed various irregularities with respect to functioning of mutual funds like failure to identify and appropriate all the expenses in individual schemes as per regulatory requirements.

"During 2018-19, 47 warning letters and 24 deficiency letters were issued to mutual funds/ Asset Management Companies and two warning letters were issued to trustees of mutual funds while adjudication proceedings were initiated against five AMCs, four trustee companies and one CEO of AMC," he said.


The Minister of State for Finance also said that Sebi also reviews the regulatory mechanism to enhance transparency and disclosures, regulatory supervision and reduce risk for investors, among others.