Two independent directors of JP Morgan Mutual Fund have resigned over corporate governance issues, according to a newspaper report
Mumbai: Two independent directors on the board of JP Morgan Mutual Fund have resigned, a report in the DNA said.
Jagadish Salunkhe, chairman of the board of trustees of the mutual fund and another independent director PGR Prasad decided to quit over corporate governance issues relating to unit holder funds, the newspaper claimed.
The report further said that the spokesperson of the mutual fund clarified by email that there have been no issues pertaining to corporate governance or use of unit holder funds.
“We assure you that JP Morgan Asset Management holds our fiduciary responsibility in the highest regard and as a firm we would never compromise on the safety of our unit holders’ funds,” the spokesperson said, according to the report. The spokesperson further said that the two independent directors “have resigned for personal reasons.”
The board of trustees of a mutual fund usually consists of a group of experts having the mandate to protect the interests of investors.
Salunkhe has been part of the insurance industry for over forty years. He joined Life Insurance Corporation of India in the 1960 and rose to become the chairman of the life insurer in January 1994.
The other independent director, Prasad retired as managing director and chief executive of SBI Mutual Fund in December 2005, a post he held for three years.
Prior to that, he held several senior posts in the banking industry, including heading an overseas subsidiary of the State Bank of India, the country’s largest lender, and working in the corporate finance division of SBI Capital Markets.
DNA newspaper said both Salunkhe and Prasad could not be reached for comment. Dharmendra Bhandari, a partner in a chartered accountant firm Anjali Subhash & Associates, is the third independent director on the board of trustees of JP Morgan Mutual Fund.
JP Morgan Mutual Fund had assets of Rs 5,195.50 crore under management as of December 31, 2010, according to AMFI data. It is ranked 20th out of the 41 mutual funds operating in the country in terms of the funds under management.
