Investors' Data As Crucial As Their Money, Mutual Funds Responsible For Any Leak, Says SEBI Chief

Protecting investor data is as important as protecting their money, SEBI Chairperson Tuhin Kanta Pandey said at the 30th foundation day of the Association of Mutual Funds in India (AMFI) on Friday.

Pandey said mutual funds remain fully responsible for the actions of vendors and third parties, even when services are outsourced. Agreements with such partners, he noted, must be designed in a way that leaves no scope for data leakage.

The SEBI chief shed light on a series of regulatory initiatives designed to support investor participation. These include Chhoti SIP for small-ticket investors, MF Lite to simplify passive investing, specialised investment funds (SIFs) for advanced strategies, the Mitra platform to track and reclaim inactive folios, and MF Central for consolidated investor services.

Additional measures such as mandatory disclosures on scheme expenses, half-yearly returns and information ratios have also been implemented to enhance transparency.

On mis-selling, Pandey said investors should never feel they bought a dream but were delivered a disappointment. He stressed that clear disclosure of risks must always remain a first principle for the mutual fund industry.

He added that fairness is essential, and any preferential treatment of investors during subscriptions or redemptions should be avoided. Strict adherence to regulatory norms such as cut-off timings, he said, will strengthen investor confidence.

Pandey cautioned that as fraudsters grow more creative, the industry must remain vigilant. “In this battle, the speed of information is our greatest weapon,” he said.

Looking ahead, expanding mutual fund penetration remains a central goal. Currently, less than 5% of India’s population invests in mutual funds, he mentioned.