The Securities and Exchange Board of India (SEBI) on Monday issued guidelines to provide administrative assistance to trustees in monitoring various activities of asset management companies (AMCs).
As per the SEBI circular, trustees should appoint a dedicated officer having professional qualifications and a minimum five years of experience in finance and financial services-related fields.
The securities market regulator said that in its interactions with the trustees, it had received feedback seeking provisions for administrative assistance to trustees in monitoring various activities of the AMCs.
"The officer so appointed, shall be an employee of the trustees and directly report to the trustees. The scope of work for the said officer shall be specified by trustees from time to time to support the role and responsibilities of the trustees," it said.
Further, trustees shall have standing arrangements with independent firms for special purpose audit and/or to seek legal advice in case of any requirement, as identified and whenever considered necessary.
The regulator said that the trustees shall continue to be liable for discharge of various fiduciary responsibilities as cast upon them in the SEBI (Mutual Funds) Regulations, 1996.
The circular will come into effect on October 1.
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.