<h1>SEBI Finds Irregularities in Mutual Funds: Improper Expense Allocation, Unauthorized Borrowing, and Non-Compliance Highlighted.</h1> The Securities and Exchange Board of India (SEBI) has identified multiple irregularities in the functioning of mutual funds, including improper expense allocation, unauthorized borrowing, and non-compliance with investment valuation norms. These issues also include close-ended schemes investing in assets with mismatched maturities and exceeding sectoral limits, leading to risk concentration. In response, SEBI issued numerous warning and deficiency letters to mutual funds and asset management companies (AMCs) over several years and initiated adjudication proceedings against some entities. SEBI, in collaboration with the government, is continuously reviewing regulations to improve transparency, governance, and investor protection in the mutual fund sector.