SEBI has announced to establish two working groups under the chairmanship of whom to review the role and eligibility of a sponsor of a mutual fund?

Solution

• SEBI announced the formation of two working groups to review the role and eligibility of a sponsor of a mutual fund. • The first group will look at an alternative set of eligibility requirements to enable new players, who otherwise may not have been eligible, to act as sponsors. • The other group will look at streamlining the role and obligations of trustees of mutual funds. • SEBI has formed a working group under the chairmanship of A Balasubramanian, MD & CEO, Aditya Birla Sun Life AMC, and chairman of AMFI (Association of Mutual Funds in India). • The working group will also examine the need for sponsor to dilute its stake in asset management company (AMC) from the existing requirement of holding at least 40% of the net worth.