Section 16 in Securities and Exchange Board of India (Mutual Funds) Regulations, 1996
16. Disqualification from being appointed as trustees.
(1)A mutual fund shall appoint trustees in accordance with these regulations.(2)No person shall be eligible to be appointed as a trustee unless-(a)he is a person of ability, integrity and standing; and(b)has not been found guilty of moral turpitude; and(c)has not been convicted of any economic offence or violation of any securities laws; and(d)has furnished particulars as specified in Form C.(3)[No asset management company and no director (including independent director), officer or employee of an asset management company shall be eligible to be appointed as a trustee of any mutual fund.](4)No person who is appointed as a trustee of a mutual fund shall be eligible to be appointed as a trustee of any other mutual fund:Provided that any mutual fund which is not in compliance with sub-regulation (3) or (4) as at the commencement of the Securities and Exchange Board of India (Mutual Funds) (Fifth Amendment) Regulations, 2006 shall ensure compliance therewith within three months from such commencement.] [Substitute by Notification No. F. No. SEBI/LAD/DOP/83065/2006, dated 21st December, 2006](5)[ Two-thirds of the trustees shall be independent persons and shall not be associated with the sponsors or be associated with them in any manner whatsoever.] [Substituted by S.O. 32(E), dated 12th January, 1998](6)In case a company is appointed as a trustee then its directors can act as trustees of any other trust provided that the object of the trust is not in conflict with the object of the mutual fund.
