SEBI has given trustees of mutual funds time till January 1, 2021 to appoint a dedicated officer, who will assist them in monitoring various activities of AMCs. Earlier, SEBI had permitted trustees to appoint a dedicated officer by October 1 to assist them in their work.
SEBI said in a recent circular that the deadline has been extended till January 1, 2021, after considering the representation received from industry body AMFI.
MF trustees can appoint a dedicated officer having professional qualification and minimum 5 years of experience in the finance and financial services industry. The officer will have to directly report to the trustees and play the role and responsibilities of the trustees.
However, SEBI has clarified that such an appointment does not mean that trustees are not liable for discharge of various fiduciary responsibilities.
Trustees will have to compensate the officer from the head ‘fees and expenses of trustees’ of SEBI MF regulations.
