Trustees, asset managers in a bind over Sebi diktat on appointing officer

The August 10 circular mandates trustees to appoint a dedicated officer to assist them in their work

An innocuous looking regulatory diktat from the Securities and Exchange Board of India (Sebi) aimed at making life easier for mutual fund trustees has put the industry in a spot. 

The circular, issued on August 10, mandates trustees to appoint a dedicated officer by October 1 to assist them in their work. Apart from the lack of clarity on the role this person would play, industry players reckon it will be near impossible to meet the deadline. 

Some trustees fear the appointment could increase their liability in monitoring the asset management companies (AMCs) substantially. 

Over the past few days, trustees and top AMC