Passlane Sign in

Ch.3 · Custodian and RTA Functions · hard

What is the minimum percentage of independent directors required on the AMC's board?

0% of students got this wrong

EXPLANATION

SEBI requires that at least 50% of the AMC's Board of Directors must be independent directors. This ensures the AMC board has sufficient independence to take decisions in the interest of unit holders rather than solely the sponsor's interests.

A.25%

B.33%

C.50% [✓ Correct]

D.Two-thirds

EXPLANATION

SEBI requires that at least 50% of the AMC's Board of Directors must be independent directors. This ensures the AMC board has sufficient independence to take decisions in the interest of unit holders rather than solely the sponsor's interests.

Practising Chapter 3 one question at a time?

Try the full chapter — 80 questions, tracked score, weak area breakdown.

Practice Chapter 3 →Take the mock test →