Economics • Banking & FinanceEasy
Which institution regulates Mutual Funds in India?
A. Reserve Bank of India (RBI)
B. Securities and Exchange Board of India (SEBI)✓ Correct Answer
C. Insurance Regulatory and Development Authority of India (IRDAI)
D. Pension Fund Regulatory and Development Authority (PFRDA)
💡 Solution & Explanation
The Securities and Exchange Board of India functions as the statutory regulatory authority entrusted with supervising mutual funds and safeguarding the interests of investors in the domestic capital market. Other entities like the Reserve Bank of India oversee commercial banking operations and monetary policy, while regulatory bodies like the IRDAI govern the insurance sector. Establishing SEBI as an autonomous regulator was a landmark reform aimed at restoring transparency and confidence in India's financial markets.
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