Sebi Chairman Tuhin Kanta Pandey has recently said trustees must act as vigilant guardians, not passive observers.
Markets regulator Sebi on Monday called on mutual fund trustees to take a more proactive role in ensuring transparency and accountability in the mutual fund industry. Speaking at the “Leadership Dialogue for Trustees of Mutual Funds” in Mumbai, Sebi Chairman Tuhin Kanta Pandey said trustees form the “first line of defence” in maintaining the integrity of the system. "This authority carries with it the moral duty to act decisively and fearlessly to protect the interests of investors,” Pandey was quoted as saying, according to a PTI report.
He urged them to set up strong early warning systems to detect irregularities, track exceptions, and trigger timely action before issues escalate.
Oversight key as mutual fund sector expands rapidly
Pandey said the mutual fund industry has grown sixfold in the past decade, with assets under management rising from ₹12 lakh crore to ₹75.6 lakh crore by September 2025. The number of investors has also jumped from 1 crore to over 5.6 crore, reflecting rising retail participation.
With this growth, he noted, trustees must strengthen their oversight of asset management companies (AMCs) and stay updated on new areas like ESG investing, AI-enabled portfolio management, and tokenised assets.
Pandey also highlighted new Sebi measures, including clearer role definitions for trustees and AMC boards, and mandatory Unitholder Protection Committees to enhance accountability.
He concluded that as the mutual fund sector evolves, trustees must “balance innovation with integrity” to preserve investor trust.
Keywords: Sebi, mutual fund trustees, early warning systems, investor protection, Tuhin Kanta Pandey, Sebi chairman
