Risk Management Norms Up SEBI, Dedicated Officers for Mfs
Original Content: Business Upside India The Securities and Exchange Board of India (SEBI) Monday announced RMF or a new risk management framework for the mutual fund market . The framework defines the risk management procedures, functions, and roles & responsibilities that the management must follow. In a circular by SEBI , it said that at least one CXO (Chief Experience Officer ) level officer who can be entrusted with the responsibility of risk management of definite functions related to MFs must be there. Also, the AMC must have a Chief Risk Officer (CRO) responsible for seeing to the overall operations related to risk management of mutual funds. The Broad Categories of Risk Driven by AMC & Schemes AMC-specific risks and scheme-specific risks are the two broad categories risk must be divided into. The scheme-specific risks will be again divided into credit risk, investment risk, governance risk, and liquidity ...