Confirming compliance

Forensic audit of fund houses will boost confidence

The Securities and Exchange Board of India (Sebi) appears to be gearing up for a forensic audit covering the entire mutual fund industry, including funds, asset management companies (AMCs), and trustees. The regulator released a consultation paper on February 9 that reviewed the roles and obligations of mutual fund trustees. On February 10, it proposed to mandate a unit holder protection committee to be constituted by the board of the AMC for the purpose of creating an independent review mechanism. On February 11, it followed up with an expression of interest seeking the empanelment of forensic auditors for the purpose