The Securities and Exchange Board of India regulates all mutual funds in India (SEBI). The duties and obligations of Asset Management Companies (AMCs) and Custodians are clearly outlined in mutual fund rules. It's important to keep in mind that before making an investment, every investor must successfully complete a KYC process. As a result, only true investors having a current PAN card are permitted to invest in mutual fund schemes. These investors additionally give bank information, allowing any redemption funds to be deposited to the investor's account immediately.
Additionally, SEBI makes sure that each AMC is overseen by a board of trustees, some of whom are required to be independent people. These trustees add an additional layer of protection and compliance.
Regulations and security measures guarantee that your money won't ever be stolen or diverted, nor will anyone flee with it.
