Snowballing Role of Trustees in Mutual Funds

On paper, trustees have the power to appoint or dismiss the AMC, only with the approval of SEBI. Trustees are effectively the eyes and ears of SEBI and play a vital role in the governance structure of mutual funds in India. Keeping in view the extensive duties and obligations that have been cast on the trustees, trustees need to be more conscious of the decisions made by AMCs and evaluate its policies from time to time to ensure compliance with the SEBI MF Regulations.