SEBI directs AMCs to set up audit committee with minimum three directors

  • 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:

  1. How many minimum directors are required in the audit committee to be set up for asset management company (AMC) as directed by SEBI?- 3
  2. 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

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