Two separate Sebi panels to review ownership norms of MFs, trustees

Market regulator has said an alternative set of eligibility rules can be introduced to enable new players who otherwise aren't eligible to act as sponsors

The Securities and Exchange Board of India (Sebi) has set up two separate expert groups to examine the roles, eligibility criteria and functions of sponsors and trustees at asset management companies (AMCs)

A sponsor is like a promoter who brings in the capital for setting up an AMC, while a trustee plays a supervisory role and is tasked with protecting investors interest.

In a release, Sebi has said an alternative set of eligibility requirements can be introduced to enable new players who otherwise aren’t eligible to act as a sponsor.

“This is expected to not only foster competition in the mutual fund industry