The Securities and Exchange Board of India (SEBI) has deferred, till January 1, 2021, the timeline for appointment of dedicated officers for administrative assistance to trustees in monitoring various activities of asset management companies (AMCs).
Last month, the SEBI issued guidelines to provide administrative assistance to trustees in monitoring various activities of AMCs and asked Mutual Fund trustees to appoint a dedicated officer having professional qualifications and a minimum five years of experience in finance and financial services-related fields by October 1.
"Upon consideration of the subsequent representation received from the AMFI, it has been decided that compliance of the aforesaid circular shall be applicable from January 1, 2021," the SEBI said in a statement on Wednesday.
In its August circular, the securities market regulator had said that in its interactions with the trustees, it had received feedback seeking provisions for administrative assistance to trustees in monitoring various activities of the AMCs.
"The officer so appointed, shall be an employee of the trustees and directly report to the trustees. The scope of work for the said officer shall be specified by trustees from time to time to support the role and responsibilities of the trustees," it had said.
Further, 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.
The regulator said that the trustees shall continue to be liable for discharge of various fiduciary responsibilities as cast upon them in the SEBI (Mutual Funds) Regulations, 1996.