The Association of Mutual Funds in India (AMFI) has introduced a set of minimum standards aimed at preventing front running and other forms of market abuse by asset management companies (AMCs). This initiative responds to increasing concerns about unethical practices in the mutual fund sector, which can erode investor confidence and compromise market integrity. The new guidelines require AMCs to implement stringent compliance measures and enhance transparency in their operations. AMFI’s move is seen as a proactive step towards protecting investors and ensuring ethical practices in the mutual fund industry. The organization has emphasized the need for a culture of ethical behavior and accountability within AMCs, urging them to prioritize investor interests. The establishment of these standards is expected to foster a more trustworthy investment environment and reinforce the credibility of India’s mutual fund industry. AMFI is committed to closely monitoring the implementation of these guidelines and taking action against any violations.
