News

August 11, 2020

SEBI guidelines to aid trustees to monitor activities of Asset Management Companies


[ by Legal Era News Network ]

SEBI

The Securities and Exchange Board of India (SEBI) on August 10 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.



Related Post

latest News

  • Enforcement Directorate Tells Court That IL&FS Financial Services Laundered Rs 5,000 Crores Of Shareholder Funds

    A recent Enforcement Directorate remand application submitted to a special court in Mumbai has alleged that IL&FS Financial Services (IFIN), which is ...

    Read More
  • ICICI Bank Directed To Pay Rs 55,000 To Customer For Not Informing About Resetting Interest Rate On Home Loan

    The ICICI bank has been directed by a district consumer forum to pay Rs 55,000 to a consumer for failing to inform him about the resetting of the rate...

    Read More
  • SC Grants Bail To P Chidambaram In The INX Media Money Laundering Case Filed By The Enforcement Directorate

    The Supreme Court has granted bail to former Union Minister P Chidambaram in the INX Media money laundering case filed by the Enforcement Directorate ...

    Read More