Sebi gives more time to MFs’ trustees to appoint dedicated officer

Markets regulator Sebi gave time till January 1 to mutual funds' trustees for appointing a dedicated officer, who will assist them in monitoring various activities of asset management companies (AMCs)

PTI
Updated23 Sep 2020, 06:24 PM IST
Photo: Ramesh Pathania/Mint
Photo: Ramesh Pathania/Mint

Markets regulator Sebi on Wednesday gave time till January 1 to mutual funds' trustees for appointing a dedicated officer, who will assist them in monitoring various activities of asset management companies (AMCs).

Earlier, trustees were required to appoint a dedicated officer by October 1 to assist them in their work.

Now, the deadline has been extended till January 1, 2021, after receiving representation from industry body Amfi (Association of Mutual Funds in India), Sebi said in a circular.

The regulator in August came out with a framework that provides administrative assistance to trustees of mutual funds in monitoring various activities of AMCs.

The regulator asked trustees to appoint a dedicated officer having professional qualification and minimum 5 years of experience in finance- and financial services-related field.

Under the guidelines, the officer so appointed will be the employee of trustees and shall directly report to them.

The scope of work for the officer will be specified by trustees from time to time to support the role and responsibilities of the trustees. The officer will accordingly assist the trustees and discharge the activities assigned to him.

"The said officer shall be treated as access person," the Securities and Exchange Board of India (Sebi) had said.

Further, trustees will 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 expenditure incurred for this will be charged under the clause of "fees and expenses of trustees" under the mutual fund norms.

Although, Sebi mentioned that the trustees will, however, continue to be liable for discharge of various fiduciary responsibilities as cast upon them.

Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.MoreLess

News in Numbers

Numbers that help you understand news better
₹295 Cr

$23 B

$65 M

3.36%

$65.47 B

$2.5 M

₹80 Cr

1.4%

₹773 Cr

₹2,705 Cr

₹1 Cr

₹14,370 Cr

₹5.74 T

First Published:23 Sep 2020, 06:24 PM IST
HomeMarketsStock MarketsSebi gives more time to MFs’ trustees to appoint dedicated officer

Most Active Stocks

Tata Steel

166.80
03:59 PM | 15 JUL 2024
-1.9 (-1.13%)

NTPC

385.65
03:58 PM | 15 JUL 2024
8.4 (2.23%)

Bank Of Baroda

258.60
03:53 PM | 15 JUL 2024
7.85 (3.13%)

Bharat Electronics

331.25
03:55 PM | 15 JUL 2024
-2.05 (-0.62%)
More Active Stocks

Market Snapshot

  • Top Gainers
  • Top Losers
  • 52 Week High

Indian Overseas Bank

68.33
03:41 PM | 15 JUL 2024
4.68 (7.35%)

M M T C

94.92
03:40 PM | 15 JUL 2024
6.31 (7.12%)

NLC India

297.75
03:57 PM | 15 JUL 2024
18.6 (6.66%)

IDBI Bank

91.54
03:58 PM | 15 JUL 2024
5.6 (6.52%)
More from Top Gainers

Recommended For You

    More Recommendations

    Gold Prices

    • 24K
    • 22K
    Bangalore
    74,771.000.00
    Chennai
    73,827.000.00
    Delhi
    73,972.000.00
    Kolkata
    74,045.000.00

    Fuel Price

    • Petrol
    • Diesel
    Bangalore
    102.86/L0.00
    Chennai
    100.75/L0.00
    Kolkata
    104.95/L0.00
    New Delhi
    94.72/L0.00
    OPEN IN APP
    HomeMarketsPremiumInstant LoanMint Shorts