Abstract:

A mutual fund is a professionally-managed investment scheme, usually run by an asset management company that brings together a group of people and invests their money in stocks, bonds and other securities. In the present paper, an attempt was made to explore the different rules and regulation laid down by SEBI and to analyze the working of SEBI in regulating Mutual Fund Market. The present study has also tried to know the role & effectiveness of SEBI in protection of Investors in Mutual funds. The different scam cases and steps taken by SEBI have been also discussed. It was found that these scams elevated SEBI from a regulatory authority to the level of a statutory authority. It was also found that certain steps have been taken by the SEBI to safeguard the interest of the investors. The present study has concluded that SEBI has taken certain proactive steps to curb these schemes and also given the clear cut instructions for corporate disclosure practices. It has also concluded that the SEBI has imposed a monetary penalty in case of violations of regulations specified and it has also strong emphasised on ex-post investigation and disciplining of mutual funds through financial penalties.