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SEBI has constituted two working groups to review the role, eligibility and obligations of sponsors and trustees of asset management companies.
SEBI said the review has become necessary considering the changing dynamics of the mutual fund industry. "This (fresh set of eligibility criteria to act as sponsor) is expected to not only foster competition in the mutual fund industry but also facilitate consolidation in the industry through mergers and acquisitions so as to reap economies of scale and scope. This is also expected to facilitate fresh flow of capital into the industry and to foster innovation," SEBI said.
The working group for review of sponsors' role and eligibility criteria includes ABSL MF CEO and AMFI Chairman, A Balasubramanian, SEBI's ex-executive director J Ranganayakulu, SBI Funds Management's Chief Business Officer DP Singh, among others. Balasubramanian has been appointed as the Chairman of the group.
'Stremline role and obligations of trustees'
SEBI said the idea behind reviewing the role and obligations of trustees is to free them of operational responsibilities so that they can take devote their attention on their supervisory role.
"Further, a need has also been felt to provide financial independence and suitable mechanisms to trustees to perform their role more effectively and in an unbiased manner," the regulator stated.
The working group for review of Trustees' role will be headed by Dr. Manoj Vaish, Independent Trustee, Mirae Mutual Fund. The other members include Sunil Gulati, Independent Trustee, SBI Mutual Fund, Supriya Sapre, Chief Compliance Officer, HDFC Mutual Fund and others.
