Mutual fund governance: sponsors and major shareholders barred from cross-holdings or board seats in other funds; one-year divestment rule. Regulation 6 prohibits a mutual fund sponsor, its associates or group companies, and any shareholder with ten percent or more shareholding or voting ... Summary
Mutual fund governance: sponsors and major shareholders barred from cross-holdings or board seats in other funds; one-year divestment rule.
Regulation 6 prohibits a mutual fund sponsor, its associates or group companies, and any shareholder with ten percent or more shareholding or voting rights in an asset management or trustee company from holding ten percent or more shareholding or voting rights in, or having board representation on, the asset management company or trustee company of any other mutual fund; incidental acquisitions from mergers or arrangements must be remedied within one year, with limited exceptions for intra-group transfers to mutual fund lite schemes and concurrent ten percent holdings in specified group entities subject to Board conditions.
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