After Sebi's warning, MFs say there is nothing to worry

Industry thinks risk management robust enough to deal with crisis

Mutual fund (MF) executives have assuaged concerns over risk management systems in the Rs 23-lakh crore domestic asset management industry.

Recently, senior officials of the Securities and Exchange Board of India (Sebi) had cautioned the sector, asking them to stay disciplined amid a gush of liquidity. 

Industry players say they have learnt from the bitter experience of 2008 and have far better checks and balances in place to avoid an encore.

Earlier this month, G Mahalingam, Sebi's whole-time member, said at a CII conference, “We need to bear at the back of our mind that a huge amount of liquidity gush is keeping