Sebi Chairman C B Bhave today said the market regulator is planning fundamental reforms for the mutual fund industry.
Speaking at an economic convention organised by Indian Merchants' Chamber here today Sebi chief said the recent liquidity crisis faced by mutual funds is over.
"But it has showed chinks in armours of mutual funds. Fundamental reforms of mutual funds are necessary. We are half way through it," he said.
Bhave also indicated the regulator is keen to continue the process of bringing reforms in the primary market despite the lull in the activity.
Although there is a feeling that primary market reform could be undertaken when the activity picks up, the regulator has decided to continue with the primary market reforms, he said.
Referring to Satyam, he said the investigation is still on. He observed in any company, there is a first level of defence (against scams) in form of internal audit. Then there is also a statutory audit. Besides, there is audit committee. Sebi is trying to find out at which level the problem arose, he said.
He also informed the system of peer review of audit for Sensex and Nifty companies has started.
