Sebi flags 23 MF practices, warns of action if they violate rules again

Regulator tells fund houses any repetition of breaches will be viewed seriously

The Securities and Exchange Board of India (Sebi) sent a letter to the mutual fund (MF) industry body — Association of Mutual Funds in India (Amfi) — raising concerns with 23 irregularities that its inspection team found short of the best-industry practices or in breach of the existing regulatory framework.

“Sebi, after considering the observations of the inspection team for the period April 1, 2016, to March 31, 2017, and the comments of asset management companies (AMCs) and trustees thereon, has taken adverse view of the following additional observations with respect to the practices for MFs,” the regulator’s letter read.