Mutual funds face regulatory action for failures in compliance, disclosure, valuation, advertising, investor redress and insider trading. Liability attaches to asset management companies, mutual funds, trustees or sponsors that contravene the Act, regulations or related circulars by failing to furnish information or returns, co operate with inquiries, comply with Board directions, resolve investor complaints, observe net worth, registration, advertisement and valuation requirements, or engage in unfair trade practices or insider trading; such defaults expose them to regulatory actions including suspension or cancellation of registration, stopping subscriptions, suspension of new scheme launches and forfeiture of amounts invested by the asset management company.