Resources for Trustees of the Mutual Funds
Resources for Trustees of the Mutual Funds
- As per para 6.8.2 of the Master Circular on Mutual Funds No. SEBI/HO/IMD/IMD-PoD-1/P/CIR/2023/74 dated May 19, 2023 (“Master Circular”), the 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.
- Since the aforesaid standing arrangement with independent firms has to be available on a continuous basis, a confirmation to this effect shall be provided by Trustees in the Half Yearly Trustee Reports submitted to SEBI. Accordingly, the format for Half Yearly Trustee Report, as provided under Chapter 2 of Formats in the Master Circular, shall stand modified as under:
“72. Compliance with the requirement of standing arrangements with independent firms for special purpose audit and/or to seek legal advice.
73. Any other matter the trustees would like to report to SEBI.” - The provisions of this circular shall be applicable with immediate effect.
- This circular is issued in exercise of powers conferred under Section 11(1) of the Securities and Exchange Board of India Act, 1992 read with the provisions of Regulation 77 of SEBI (Mutual Funds) Regulations, 1996, to protect the interest of investors in securities market and to promote the development of, and to regulate the securities market.
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