-
16. Discuss briefly the role of Trustee of a Fund in India.
Ans: Trustee should approve each scheme as per regulation and file the Offer Documents of each scheme with SEBI. The AMC and the trustee are required to ensure that statements made in the Offer Document are true and correct. Trustee of a Fund are its front-line regulators , empowered by SEBI to ensure , inter alia, the smooth working of the AMC . They must appoint the auditors, the registrars and all other key personnel prior to the launch of a cheme. They are required to ascertain that the management of one scheme does not compromise on the management of its other schemes . Mutual Fund regulations mandate them to prevent conflict of interest between the AMC and the unit holder , regulation futher prevent the trustees from making any change to a Fund's attributes, trust fees , and expenses payable, or any other change that modifies the scheme , without written communication to every unit holder of a scheme.