SEBI has allowed trustees of mutual funds to appoint a dedicated officer to assist them in carrying out their fiduciary duty.
The selected officer should have a professional qualification and minimum five years of experience in finance and financial services related field, said SEBI in a circular on Monday.
The circular will be applicable from October 1.
The officer will be an employee of the Trustees and directly report to them. 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. The officer shall accordingly assist the Trustees and discharge the activities assigned to him, it said.
Further, Trustees will have standing arrangements with independent firms for special purpose audit and seek legal advice in case of any requirement, it said.
The expenditure incurred incurred by the Trustees will be charged under “fees and expenses of trustees," said SEBI.