Sebi chief Madhabi Buch.

New Delhi:

Sebi Chairperson Madhabi Puri Buch said the biggest risk to the growth of the mutual fund industry is individual malpractices and there is a need to set up an ethics committee to deal with it. "Where we are today as an industry, our foundations are very strong. Now the time has come to build a strong structure on top of it. I think the only thing that is at risk for the industry is the mess at the individual level... If we find this, then as a regulator we will have to step in," he said.

He said the foundation of the mutual fund industry is very strong and the only thing that can shake it is the mess at the individual level. Therefore, industry body Association of Mutual Funds in India (AMFI) should have an ethics committee and this committee should take action against wrongdoers in the market on a self-regulatory basis.

Butch exuded confidence that the industry has a lot of potential. With this capacity, it can increase from the current Rs 40 lakh crore to about Rs 100 lakh crore.

He asked the industry to invest in technology. The Sebi chief said technology is an important aspect. It enables the industry to operate in an efficient and cost-effective manner.




(This story has not been edited by the NDTV team; it has been published directly from the Syndicate feed.) )