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10. What corporate governance regulation should the Mutual Fund Industry adhere to while appointing directors in AMCs and trustees, and in making disclosures to investors?
Ans: The Mutual Fund Industry has to adhere to stringent corporate governance regulation with regard to appointing directions in AMCs and trustees, and also in making disclosuers to investors. In order to safeguard the interest of investors and to protect them, these regulations stipulate that a Mutual Fund clearly differentiate between the promoters and manager of a Fund. At least 50% of AMC directors are independent and in the case of trustees, two-third are independent .Disclosure norms say that all Mutual Funds should disclose their financial statements biannually and their market practice (current portions and investments in market )monthly.