What concern did SEBI highlight regarding the mutual

Solution

SEBI expressed concern that response times to large redemptions in the mutual fund industry have remained largely unchanged since 2020, even after initial stress tests were conducted. This issue underscores the need for more comprehensive, industry-wide stress tests to better prepare the mutual fund sector for potential market stresses. The goal is to enhance the sector's resilience, ensuring that mutual funds can more effectively manage sudden large-scale redemptions and protect investors during periods of market volatility.