SEBI is responsible for controlling all mutual funds in India and has laid down some concrete guidelines for mutual fund investors.
Top 7 Mutual Fund Holders Rights and Protections
- Investors should be informed about the investment strategy, investment objectives, financial position, and overall management of the scheme.
- He should receive the certificate or statement of account of the units in the name of the investor within six weeks from the commencement of investment.
- Within 42 days after the declaration of dividend, it must be credited directly to the investor or to the bank account provided by him. Similarly, if any of the redemption or repurchase notices are given in the scheme, it should be implemented within a maximum of 10 days.
- The trustee of a mutual fund company is obliged to inform the investors in a timely manner about any disclosures that may adversely affect the investment you have made.
- Any mutual fund plan can be rolled out by the consensus of 75% of its unit holders.
- Similarly, 75% of unit holders will be able to close an asset management company that manages mutual funds after the prior approval of SEBI.
- In any of the above cases, if the investor’s rights have been violated, it can be reported to SEBI and the matter can be followed up with mutual funds through SEBI.
Important Roles of SEBI
The Securities and Exchange Board of India (SEBI) has been established as the regulator of the securities market under Section 3 of the Securities and Exchange Board of India (SEBI) Act, 1992.
- Protection of securities investors interests.
- Driving the development of the securities market.
- Regulation of securities market.
SEBI has also been given some statutory powers by law. As capital is raised and securities are transferred from the securities market, SEBI’s regulatory jurisdiction extends to the industry as well as to its intermediaries and affiliates operating in the securities market. The law also gives SEBI the autonomy to plan and formulate measures that would be appropriate for carrying out the directed work.
Rights of SEBI
- To control the stock market and any other securities market on the basis of regulations.
- Registration of brokers (stock brokers), sub-brokers (sub-brokers) as well as regulation and supervision of their operations.
- To regulate the work as an autonomous body.
- Prevention of fraudulent and undesirable practices.
- SEBI has the authority to request regular information, conduct periodic inquiries, conduct inquiries and audits of stock markets, intermediaries, mutual funds and other persons involved in the securities market.
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