Sponsor eligibility tightened: enhanced capital, liquid networth and governance conditions imposed for mutual fund sponsors and asset managers. Amendments introduce a liquid networth definition, require conversion of trustee boards into trustee companies, and strengthen sponsor eligibility and capitalization criteria including multi-year profitability, positive networth and liquid networth linked to capital contribution or acquisitions. Where sponsors do not meet thresholds, enhanced AMC capitalization, share lock-ins, and senior management experience are mandated. Governance and compliance duties for trustees and the asset management company are expanded-detailed pre-launch and ongoing board due diligence, appointment and disclosure of key personnel, independent compliance reporting, Unit Holder Protection Committees, valuation norms, and mandated investments in specified development funds are prescribed.
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Sponsor eligibility tightened: enhanced capital, liquid networth and governance conditions imposed for mutual fund sponsors and asset managers.
Amendments introduce a liquid networth definition, require conversion of trustee boards into trustee companies, and strengthen sponsor eligibility and capitalization criteria including multi-year profitability, positive networth and liquid networth linked to capital contribution or acquisitions. Where sponsors do not meet thresholds, enhanced AMC capitalization, share lock-ins, and senior management experience are mandated. Governance and compliance duties for trustees and the asset management company are expanded-detailed pre-launch and ongoing board due diligence, appointment and disclosure of key personnel, independent compliance reporting, Unit Holder Protection Committees, valuation norms, and mandated investments in specified development funds are prescribed.
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