Based on representations received from the mutual fund industry, SEBI has tweaked the circular on corporate governance in which the market regulator has allowed existing trustees and independent directors of AMCs, who have held office for nine years or more, to continue for another two years.
This means, trustees and independent directors of AMCs can hold their positions for 11 years.
Earlier in November, the market regulator had said that existing independent trustees and independent directors, who have been with AMCs for nine years or more, could continue for one more year.
In a circular issued today, SEBI said, “The aforesaid circular permits existing independent trustees and independent directors, who have held office for 9 years or more (as on November 30, 2017), to continue in their respective position for a maximum of 1 additional year. The aforesaid provision may now be complied with, in a phased manner, within a period of 2 years.”
Another key change in the corporate governance structure is compliance for auditors. SEBI said that auditors who have conducted audits of the mutual fund for nine years or above can continue until the end of FY2018-19.
This replaces the part of the circular, which said that auditors who have conducted audit of the mutual fund for nine years or more can continue for a maximum of one year from date of issuance of the circular.