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<h1>SEBI Mandates Mutual Funds to Enhance Risk Management, Implement Contingency Plans, and Obtain Insurance.</h1> This circular from the Securities and Exchange Board of India (SEBI) outlines risk management requirements for mutual funds. It mandates mutual funds to establish a risk management function, disaster recovery and business contingency plans, and obtain insurance against errors and omissions. The circular categorizes risk management practices into existing industry practices, mandatory practices, and best practices. Mutual funds must implement these practices across various operational areas, including fund management, operations, customer service, marketing, and distribution, and report progress to SEBI. The circular also emphasizes the importance of compliance, internal audits, and continuous risk assessment to protect investor interests.