**Summary:**
This circular, reference SEBI/HO/IMD/IMD-I/PoD-1/PCIR/2023/126, issued by the Securities and Exchange Board of India (SEBI) on July 26, 2023, addresses resources for Trustees of Mutual Funds. It pertains to all Mutual Funds, Asset Management Companies (AMCs), Trustee Companies/Boards of Trustees of Mutual Funds, Registrar to an Issue and Share Transfer Agents (RTAs), and the Association of Mutual Funds in India (AMFI).
The circular mandates that Trustees maintain standing arrangements with independent firms for special purpose audits and/or legal advice, as stipulated in para 6.8.2 of the Master Circular No. SEBI/HO/IMD/IMD-I/PoD-1/PCIR/2023/74 dated May 19, 2023. Trustees must now provide confirmation of these arrangements in their Half Yearly Trustee Reports submitted to SEBI. Consequently, the format for the Half Yearly Trustee Report, as outlined in Chapter 2 of the Formats in the Master Circular, has been modified to include specific compliance reporting on these standing arrangements.
This directive, effective immediately, is issued under the authority of Section 11(1) of the Securities and Exchange Board of India Act, 1992, and Regulation 77 of SEBI Mutual Funds Regulations, 1996, to protect investor interests, promote market development, and regulate the securities market.
The circular is accessible on the SEBI website (www.sebi.gov.in). For further information, contact Peter Mardi, Deputy General Manager, at 912226449233 or peterm@sebi.gov.in.
Key Entities Referenced
Securities and Exchange Board of India: Regulatory body for securities market in India (SEBI)
Mutual Funds: Refers to all mutual funds regulated by SEBI
Asset Management Companies: Companies that manage the assets of mutual funds (AMCs)
Trustee Companies: Companies acting as trustees for Mutual Funds
Association of Mutual Funds in India: An association of all AMCs in India (AMFI)
Master Circular on Mutual Funds No. SEBIHOIMDIMD PoD1PCIR202374 dated May 19, 2023: A key policy document issued by SEBI, which this circular modifies
Registrar to an Issue and Share Transfer Agents: Registrar to an Issue and Share Transfer Agents (RTAs)
Securities and Exchange Board of India Act, 1992: The Act under which SEBI derives its powers
CIRCULAR
SEBI/HO/IMD/IMD-I –PoD1/P/CIR/2023/126 July 26, 2023
To
All Mutual Funds
All Asset Management Companies(‘AMCs’)
All Trustee Companies/Boards of Trustees of Mutual Funds
All Registrar to an Issue and Share Transfer Agents(‘RTAs’)
Association of Mutual Funds in India(‘AMFI’)
Sir/Madam,
Subject: Resources for Trustees of Mutual Funds
1. As per para 6.8.2 of the Master Circular on Mutual Funds No. SEBI/HO/IMD/IMD-
PoD-1/P/CIR/2023/74 dated May 19, 2023 (“Master Circular”), the Trustees shall
have standing arrangements with independent firms for special purpose audit
and/or to seek legal advice in case of any requirement as identified and whenever
considered necessary.
2. Since the aforesaid standing arrangement with independent firms has to be
available on a continuous basis, a confirmation to this effect shall be provided by
Trustees in the Half Yearly Trustee Reports submitted to SEBI. Accordingly, the
format for Half Yearly Trustee Report, as provided under Chapter 2 of Formats in
the Master Circular, shall stand modified as under:
“72. Compliance with the requirement of standing arrangements with
independent firms for special purpose audit and/or to seek legal advice.
73. Any other matter the trustees would like to report to SEBI.”
3. The provisions of this circular shall be applicable with immediate effect.
Page 1 of 24. This circular is issued in exercise of powers conferred under Section 11(1) of the
Securities and Exchange Board of India Act, 1992 read with the provisions of
Regulation 77 of SEBI (Mutual Funds) Regulations, 1996, to protect the interest
of investors in securities market and to promote the development of, and to
regulate the securities market.
5. The circular is available on SEBI website at www.sebi.gov.in.
Yours faithfully,
Peter Mardi
Deputy General Manager
+91-22-26449233
Email: peterm@sebi.gov.in
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