| dc.description.abstract | The financial services industry in the Indian economy is
undergoing a sea change. One major change that has taken place
in the last few years is the establishment of a large number of
mutual funds. It is widely recognized that the mutual funds
benefit the small investors through more efficient management of
their investments. At the moment, only large nationalized banks
and financial institutions are permitted to set up these funds.
However, there is increasing pressure to allow such funds to be
set up in the private sector. The time has therefore come to
bring in appropriate legislation to govern the functioning of
mutual funds. In this paper, we discuss the various issues
connected with operation of mutual funds and then propose a set
of regulations to ensure that they fulfil the role they are
expected to. In proposing these regulations, we have drawn
heavily upon the Investment Company Act of 1940, the US
legislation on operation of investment companies. | en |
