How does AMFI regulate the mutual fund industry?

AMFI, or Association of Mutual Funds in India, is an industry standards organisation for mutual funds in India and was founded on August 22, 1995.

It is a non-profit organisation and its main objective is to develop the Indian mutual fund industry on ethical lines and maintain standards while protecting and promoting the interest of mutual fund houses as well as unit holders.

Its main objectives are:

• To define and maintain high professional and ethical standards in all areas of operation of mutual fund industry.
• To recommend and promote best business practices and code of conduct to be followed by members and others engaged in the activities of mutual fund and asset management including agencies connected or involved in the field of capital markets and financial services.
• To interact with the Securities and Exchange Board of India (SEBI) and to represent to SEBI on all matters concerning the mutual fund industry.
• To represent to the government, Reserve Bank of India and other bodies on all matters relating to the mutual fund industry.
• To undertake nation-wide investor awareness programme so as to promote proper understanding of the concept and working of mutual funds.
• To disseminate information on mutual fund industry and to undertake studies and research directly and/or in association with other bodies.
• To take regulate conduct of distributors including disciplinary actions (cancellation of ARN) for violations of Code of Conduct.
• To protect the interest of investors/unit holders.

One can see AMFI’s work in daily life through the advertisements that instruct customers to pay heed to details of mutual fund schemes and to make them aware of its risky nature.