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Ch.4 · SEBI Mutual Fund Regulations · medium

How many independent trustees must a mutual fund's Board of Trustees have as per SEBI regulations?

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EXPLANATION

SEBI (Mutual Funds) Regulations, 1996 require that at least two-thirds of the members of the Board of Trustees must be independent — i.e., they should not be associated with the sponsor or its associates.

A.At least one-third

B.At least half

C.At least two-thirds [✓ Correct]

D.All trustees must be independent

EXPLANATION

SEBI (Mutual Funds) Regulations, 1996 require that at least two-thirds of the members of the Board of Trustees must be independent — i.e., they should not be associated with the sponsor or its associates.

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