Rs 40-trillion MF industry braces for industry-wide forensic audit

AMCs term it from 'positive development' to 'preventive exercise'

The Rs 40-trillion mutual fund (MF) industry is bracing for a comprehensive audit — a move aimed at boosting investor confidence. In a first, the Securities and Exchange Board of India (Sebi) has invited Expression of Interest (EoI) for empanelment of forensic auditors, specifically for MFs.

Industry executives say that the regulator is likely to be preparing for the extensive exercise to safeguard the interests of retail investors as the industry embarks on a stronger growth path. "The regulator is likely to conduct an industry wide audit. It's a positive development, given the surging assets under management (AUM). The time