- Securities and Exchange Board of India (SEBI) has directed the mutual fund (MF) industry to set up an audit committee at the asset management company (AMC) level.
- The audit committee will require a minimum of three directors and at least two-third of them shall be independent directors of the AMC.
- Currently, such a committee is set up by the trustee of a fund house.
Points to remember:
- How many minimum directors are required in the audit committee to be set up for asset management company (AMC) as directed by SEBI?- 3
SEBI MF regulations 1996” designate that a mutual fund must be a three-tired structure consisting of: (1) A Sponsor (2) A Trustee (3) An asset management company (AMC)
Source: Business Standard