BFSI Insight Summit: MF institutional structure needs rethink, says Thorat

Under the current framework, an MF has three main pillars -- sponsor, trustee, and AMC

The mutual fund organisation structure needs a rethink and more responsibilities should be entrusted to asset management companies (AMCs), Usha Thorat, chairperson of the Securities and Exchange Board of India’s (Sebi’s) Mutual Fund Advisory Committee, said on Tuesday.

Delivering her keynote speech at the Business Standard BFSI Insight Summit on mutual funds (MFs), the former deputy governor of the Reserve Bank of India said the roles and responsibilities of sponsors, trustees, and AMCs need to be redefined.

“One really has to ask the question ‘who is actually responsible for what’. While the trustee has got the oversight responsibility, the AMC