Question

How does SEBI's oversight differ from day-to-day management of mutual funds?

Accepted Answer

SEBI sets the regulatory framework and enforces compliance but does not manage investments — day-to-day management is entirely the AMC's responsibility — SEBI's role is regulatory — setting rules (TER limits, investment restrictions, disclosure norms), registering entities, and enforcing compliance. SEBI explicitly does not approve or endorse any scheme's investment merit. Day-to-day investment management is entirely the AMC's responsibility under trustee oversight. This separation is fundamental to the regulatory architecture.