Risk management system: mutual funds must implement independent risk functions, contingency plans and insurance obligations. Mutual funds must adopt an enterprise-wide Risk Management System covering fund management, operations, customer service, marketing and other business risks. Key mandatory elements include an independent risk management function, tested disaster recovery and business contingency plans enabling critical 'Day 1' operations, and insurance against third party errors and omissions; custodians and R&T agents must have parallel arrangements. Boards of AMCs and trustees must oversee implementation, review progress, report to SEBI, and incorporate the system into internal audit for ongoing verification.
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Provisions expressly mentioned in the judgment/order text.
Risk management system: mutual funds must implement independent risk functions, contingency plans and insurance obligations.
Mutual funds must adopt an enterprise-wide Risk Management System covering fund management, operations, customer service, marketing and other business risks. Key mandatory elements include an independent risk management function, tested disaster recovery and business contingency plans enabling critical "Day 1" operations, and insurance against third party errors and omissions; custodians and R&T agents must have parallel arrangements. Boards of AMCs and trustees must oversee implementation, review progress, report to SEBI, and incorporate the system into internal audit for ongoing verification.
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