Securities and Exchange Board of India | Original Article
Mutual funds are financial intermediaries which collect the savings of investors and invest them in a large and well diversified portfolio of securities. The advantages for the investors are reduction in risk, expert professional management, diversified portfolio, liquidity of investment and tax benefit. This fast grown industry is regulated by the Securities and Exchange Board of India (SEBI). Today there are around 40 mutual funds and over 300 schemes with total assets of around Rs. 6.4 lakes crores. Since the mutual funds involve a huge amount of retail investors, therefore, this paper attempts to analyse whether SEBI is able to regulate the activities in Mutual Fund Market and whether its regulatory role is capable to protect the interest of huge investors. This study also attempts to analyse the shortcomings (if any) in the regulatory regime and suggest some measure to increase its effectiveness.