NISM Certifications · NISM-Series-V-A: Mutual Fund Distributors · Legal and Regulatory Framework
As per SEBI regulations, what is the minimum proportion of independent trustees required on the board of trustees of a mutual fund (or the board of the trustee company)?
At least two-thirds of the trustees must be independent, meaning not associated with the sponsor in any way. This requirement helps trustees supervise the AMC objectively and protect the interests of unit holders.
- AOne-fourth
- BOne-third
- CTwo-thirdsCorrect
- DThree-fourths
Explanation
At least two-thirds of the trustees must be independent persons who are not associated with the sponsor in any manner. This ensures the trustees can oversee the AMC independently and protect unit holders. One-third is the common distractor but is too low.
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