9911796707
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 ..... 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. 3. A person who is an "associate" in accordance with definition in the Regulations cannot be appointed as in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s) 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 while sending the bio-data of the new directors of AMC or trustee company for our information or approval as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... holding in AMC or are you a nominee of an entity having stake in AMC ? VI. Record of Regulatory Violations/Criminal Offence (if any): 1. Have you ever been convicted by a court for any criminal offence or any other offence involving moral turpitude or fraud or have been found guilty of any economic offence at any time in the past ? 2. Has any Organisation of which you were an employee or director or over which you exercise/exercised management or policy control ever been convicted of any 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 abr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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