Audit Committee of Asset Management Companies (AMCs)

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....AMC level. The agenda was discussed in the Mutual Fund Advisory Committee (MFAC) and it was recommended that the AMC of mutual fund should constitute an Audit Committee. 2. In this regard, taking into account the recommendation of MFAC and the feedback received from the industry, it has been decided that the AMCs of mutual funds shall be required to constitute an Audit Committee. The role, responsibility, membership and other features of the Audit Committee of AMC are detailed in this circular. 3. Role: The Audit Committee of the AMC shall be responsible for oversight of financial reporting process, audit process, company's system of internal controls, compliance to laws and regulations and other related process, with specific reference t....

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....ttee, whichever is greater, with at least two independent director. If one-third of the total strength results into fraction, then higher number after rounding up shall be considered for the quorum. 6. Reporting: 6.1. The internal auditor shall submit its report to the Audit Committees of AMC and the Board of AMC; 6.2. The Audit Committee of AMC shall forward their observations on internal audit report, if any, to the Trustees. 7. Powers and Responsibility: 7.1. Financial Reporting 7.1.1. Oversight of the Mutual Fund Schemes' and AMC's financial reporting process. 7.1.2. Considering and recommending for approval of AMC Board, all accounting policy issues for the Schemes and the AMC, including any proposed changes to the accoun....

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....ower complaints, etc. 7.2.6. Reviewing Regulatory Inspection Reports. 7.2.7. Reviewing implementation status of all outstanding action points arising out of Internal Audit Reports, Statutory Audit Reports, Systems Audit Reports, Inspection Reports etc. 7.2.8. Reviewing the adequacy of the internal control systems, including defining metrics for measuring internal controls, seeking comments of the internal auditors about Internal Control Systems, etc. and the steps taken towards improving the effectiveness of internal control system including through automation. 7.2.9. Interacting with the statutory and internal auditors of the Mutual Fund, at least once annually without engagement of management of the AMC. Besides the mandatory requ....