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SEBI Presses Mutual Fund Trustees on Fees and Oversight

14 October 20251 min read
BANKING & FINANCESEBI PressesMutual FundTrustees on Feesand Oversight14 October 2025safalsetu.com

Why in the news

SEBI underlined trustees’ role in protecting investors; its chief, Pandey, urged them to act decisively and fearlessly on irregularities.

Key facts

  • Trustees: independent persons or a board overseeing a fund; they may question, escalate or intervene.
  • Independent checks: test internal controls, seek explanations, challenge management assumptions.
  • Early warning: monitoring to detect anomalies and trigger timely action.
  • Role split: trustees do due diligence; AMC Boards form a Unitholder Protection Committee (UPC).
  • Market abuse: guard against front-running, insider trading and misuse of sensitive information.

SEBI’s aim

Boost investor confidence, sharpen accountability and favour proactive supervision over reactive compliance.

Exam angle

  • Regulator: SEBI.
  • Terms: AMC, trustees, UPC.

Test yourself

1. Which committee must AMC Boards form to safeguard investors, as per SEBI’s recent role split?

AMC Boards must form a Unitholder Protection Committee (UPC).

2. According to SEBI, whose reports must mutual fund trustees not rely on alone for compliance checks?

Trustees must verify compliance independently, not only via AMC reports.

3. Which regulator urged mutual fund trustees to act decisively and fearlessly?

SEBI’s chief urged trustees to act decisively and fearlessly.

This topic is part of Daily Current Affairs 14 October 2025 (19 topics).

All topics of the dayDay quizOctober 2025

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