Shareholding and governance limits restrict cross ownership and board representation in mutual funds; non conformities must comply within a year. Regulation 7B forbids sponsors, their associates or group companies, and any shareholder holding 10% or more in an asset management or trustee company from obtaining 10% or more shareholding or board representation in the asset management or trustee company of any other mutual fund. Persons not conforming at commencement must comply within one year; incidental acquisitions from mergers or similar arrangements must also be regularised within one year.