TMI BlogIndependent Directors on Boards of AMCs and Trustee Companies.X X X X Extracts X X X X X X X X Extracts X X X X ..... protect the interests of investors. With a view to implement the regulations in this regard in letter and spirit, the following clarifications are being issued. 1. According to Regulation 16(5), an independent trustee should not be associated in any manner with the sponsor. It is clarified that relatives (as defined in the Companies Act) of sponsor or directors of the sponsor company or relatives of associate directors of the AMCs and trustee companies shall be considered as associate directors. 2. The nominees of the companies who are stakeholders in the sponsor company or AMC (even if they are not deemed sponsors by virtue of holding less than 40% of net worth of AMC), shall be considered as associate directors. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... th the Regulations. Your attention is drawn to Regulation 18(25)(A)(i) of SEBI (Mutual Funds) Regulations, 1996 which requires the trustees to be discerning in the appointment of the directors on the Board of the asset management company. Further, under Regulations 18(27)(iii) and (v), the independent directors of the trustee or asset management company are required to pay specific attention to the selection and nomination of individuals to fill the vacancies of independent directors. Considering the above clarifications and provisions in the Regulations, the format for sending the bio-data of directors of AMCs and trustees to SEBI has been revised and is enclosed herewith. You are advised to use this format in the future ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... If retired more than 10 years back, please indicate last position held. IV. For AMC directors, details of professional experience in finance and financial services field [Reg. 21(b)]. V. Particulars of Present Directorship and Trusteeship. Organisation Name Any association with the sponsor Position held Nature of job responsibilities Period From-To ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ny criminal offence or any criminal suit filed during your association with them ? 3. Have you ever been found guilty by any court/regulatory body/self-regulatory organisation/stock exchange for any offence related to securities market in India or abroad ? 4. Have you ever been associated with any Organisation as a director or an employee against which SEBI had initiated action of suspension or cancellation of certificate of registration or initiated action under section 11(B) of SEBI Act or any prosecution launched for acts committed during your association ? (If the answer to any of the above questions is in affirmative, please furnish details. Please disclose any such pen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (i) The trustees were discerning in the appointment of this director [Reg. 18(25)(A)(I)]. (ii) The independent directors of the trustees and AMC have paid specific attention in the selection and nomination of this director [Reg. 18(27)(iii) and (v)]. 6. SEBI would immediately be informed on any changes pertaining to Paras VI and VII in the Bio-Data and other requirements as specified in Regulations would be complied with. Signature Name (Trustee Authorised by the Board of Trustees) Date: Place: - Circular - Trade Notice - Public Notice - Instructions - Office orders Tax Management India - taxmanageme ..... X X X X Extracts X X X X X X X X Extracts X X X X
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