Under mutual fund norms, trustees are required to obtain internal audit reports at regular intervals from independent auditors
Sebi has now decided that trustees will appoint a dedicated officer having professional qualification and minimum 5 years of experience in finance and financial services
NEW DELHI :
Markets regulator Sebi on Monday came out with a framework that provides administrative assistance to trustees of mutual funds in monitoring various activities of asset management companies (AMCs).
The new guidelines will come into force from October 1, the regulator said in a circular.
Under mutual fund norms, trustees are required to obtain internal audit reports at regular intervals from independent auditors appointed by them.
The regulator, in 2000, had put in place guidelines that included appointing independent auditors for trustees to effectively discharge their responsibilities.
In addition to these, Sebi has now decided that trustees will appoint a dedicated officer having professional qualification and minimum 5 years of experience in finance and financial services related field.
The officer so appointed will be the employee of trustees and 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) noted.
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.
The decision has been taken after receiving feedback from stakeholders.
Sebi said the trustees will, however, continue to be liable for discharge of various fiduciary responsibilities as cast upon them.
This story has been published from a wire agency feed without modifications to the text.
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