SEBI chief Tuhin Kanta Pandey calls for wider reach of SIPs, tighter vigilance in mutual fund industry

SEBI Chairman Tuhin Kanta Pandey on Friday highlighted the untapped growth potential in India’s mutual fund industry, urging stakeholders to work collectively to deepen its penetration, especially through small-ticket investments.

Speaking at an event organised by the Association of Mutual Funds in India (AMFI), Pandey likened each Systematic Investment Plan (SIP) to a seed planted for the future, stressing the importance of reaching every household with sachet-sized SIPs. “Every SIP is a seed that can grow into a financial tree,” he said.

Pandey underlined that SEBI’s ongoing regulatory efforts are reshaping the mutual fund ecosystem, aiming to enhance trust, accessibility, and investor safety. He noted that mutual funds must remain accountable for the conduct of their vendors and third-party service providers, even as the ecosystem expands.

“Data privacy must remain a top priority,” he added, while also calling for heightened vigilance against fraudulent redemptions, especially in a more digitised investment environment.

In a bid to further financial inclusion, the SEBI chief revealed that the regulator is considering incentives for first-time women investors, a move aimed at narrowing the gender gap in investing.

The remarks come at a time when the mutual fund industry is seeing robust inflows, driven by record SIP contributions and rising retail participation, especially from tier-2 and tier-3 cities.