Funds to record first-time investment decisions seriously
Mumbai: After having, initially, raised a hue and cry about Sebi trying to micro-manage the affairs of the mutual funds, mutual funds have now strictly begun to adhere to the Sebi directive requiring them to record reasons for every decision to invest for the first time in a stock.

The market regulator had introduced this measure with effect from August 8. While some funds agreed to the new directive immediately, others, like UTI, stated that they already have systems in place. Three mutual funds, including the Unit Trust of India, have been asked by the regulator to give details of their existing system of recording investment decisions.

The Indian mutual fund industry is now being pushed towards more disclosures to both investors and the regulator. Only recently, Sebi revised the reporting format for mutual funds. According to the reasoning in Sebi, with the industry growing, it is imperative for the regulator to have a greater grasp on the activities of the mutual funds.
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