The Sebi chief said mutual funds are an important vehicle to encourage investors to participate in the markets. Buch expressed confidence in the industry’s potential and said its asset size could grow from the current ₹40 lakh crore to ₹100 lakh crore.
She asked the industry to adopt robust self-regulation measures and warned them that the regulator will step in if they fail to do it themselves. The biggest risk to growth of the mutual fund industry is individual misdemeanors, said Buch. “The only thing that is a risk to the industry is where individual misconduct of persons in this industry.”
The Sebi chairperson said industry body AMFI should establish an ethics committee to take action against individuals engaging in misconduct, even though it is not officially a self-regulatory organisation (SRO).
