Phones, Laptops, iPads Checks: SEBI Reportedly Steps Up Vigilance On Mutual Fund Executives

The Securities and Exchange Board of India (SEBI) has escalated its regulatory vigilance, conducting unanticipated inspections on key mutual fund executives and scrutinizing their digital devices.

What Happened: SEBI has amplified its regulatory oversight across major market players, Moneycontrol reported. The surprise inspections involve the scrutiny of digital devices, including mobile phones, iPads, and laptops of top executives.

Over the past year, five prominent mutual funds have undergone these inspections, during which the market regulator accessed the mobile phones of certain top executives, the report added citing sources.

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Referred to as “thematic inspections” by SEBI, these efforts are aimed at scrutinizing the records of multiple mutual funds to gather information on block deals, simultaneous trades, broker communications, and related matters.

These inspections represent a secondary level of scrutiny, conducted beyond automated surveillance and without prior notice. The purpose of collecting data is to analyze patterns for any anomalies or unusual practices that warrant further investigation.

This heightened vigilance by SEBI is part of its larger effort to ensure transparency and fairness in the mutual fund industry. The surprise inspections are intended to keep mutual fund executives on their toes and discourage any unethical practices. 

Some officials have expressed concern over this trend, stating that access to personal digital devices is disturbing, even if there is nothing to hide professionally, the report added.

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