Mutual Fund Online Investment-Mutual Funds- Regulatory Bodies !

The structure of mutual funds in India is governed by SEBI(Mutual Fund)Regulations, 1996.
It is mandatory to have a three tier structure of

Sponsor-Trustee-Asset Management Company.

The Sponsor is the promoter and he appoints the Trustees who are responsible to the investors of the fund. AMC is the business face of the mutual fund as it manages all the affairs of the fund

Regulating agencies for MF & its Constituents

SEBI

RBI
as a supervisor of bank owned mutual funds
as a supervisor of MMMFs

Ministry of Finance

Company Law Board, Department of Company Affairs and Registrar of Companies

Stock Exchanges (self regulatory Organization)

Office of the Public Trustee

Regulatory jurisdiction of RBI over mutual funds

RBI is the monetary authority and the regulator of the banking system. Bank sponsored mutual funds were under the dual control of RBI and SEBI.
Presently RBI is only the regulator of the sponsors of bank sponsored mutual funds. SEBI is the regulator of all mutual funds.
Mutual funds are affected by the RBI stipulations on structure, issuance, pricing & trading of Government Securities

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Role of Ministry of Finance in mutual fund regulations?

The finance ministry is the supervisor of both the RBI and SEBI.

Aggrieved parties can make appeals to the MoF on the SEBI rulings relating to mutual funds

Self regulatory organizations (SRO’s)?

SRO’ s are the second-tier regulatory mechanism created by market participants, to regulate the working of a group of persons/organizations. If the SRO is registered with the regulatory authority, it obtains certain powers from the regulatory authority
For example though the stock exchanges are regulated by SEBI, they are also registered SRO’s.

What are the objectives of AMFI ?

AMFI is an industry association, incorporated in 1995, is not an SRO, so it can just
issue guidelines to members. It cannot enforce regulations.

Objectives

To promote the interests of mutual funds and unit holders.

To set ethical, commercial and professional standards in the industry.

To increase public awareness of the mutual fund industry.

AMFI is governed by a board of directors elected from mutual funds and is headed by a
full time chairman
Godmind Mutual Fund Advisory Services abides will all the code of ethics’ described under SEBI Regulation.