Sebi steps up MF reforms

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of Mutual Funds in India, denied there were any problems relating to the role of trustees and said they were performing their role diligently. “Trustees meet once in two months, do their due diligence before signing off the reports. We see trustees as first-level regulators. Schemes are approved by them, and the AMCs report to them,” Kurian added.

Sebi’s MF regulations clearly lay down the eligibility criteria for trustees. According to regulations, trustees “shall have a right to obtain from the asset management company such information as is considered necessary by the trustees”. The trustees must also ensure that before any scheme is launched, the AMC has the necessary systems in place; appointed all key personnel, auditors, a compliance officer and registrars; as well as prepared a compliance manual and designed internal control & audit mechanisms. They are also expected to ensure that specified norms for the empanelment of brokers and marketing agents have been complied with.