Mutual funds in India are supervised by the Securities and Exchange Board of India (SEBI). SEBI is a regulatory body established under the SEBI Act, 1992, which aims to protect the interests of investors in securities and to promote the development and regulation of the securities market.
SEBI has the power to regulate and monitor mutual funds in India, including the approval of new mutual fund schemes, the supervision of mutual fund activities, and the protection of investor interests. SEBI has set up regulations and guidelines for the operation of mutual funds, including disclosure requirements, investment limits, and restrictions on advertising and marketing.
SEBI also monitors the performance of mutual funds through regular inspections and audits. SEBI requires mutual funds to disclose information on their portfolio, investment strategy, and performance, and to report regularly to SEBI and investors.
SEBI also regulates the fees and charges levied by mutual funds, including the management fee, advisory fee, custodian fee, and other expenses. The fees charged by mutual funds are subject to SEBI regulations, which aim to ensure that investors are not charged excessive fees and that the fees charged by mutual funds are reasonable in relation to the services provided.