DISQUALIFICATION FROM BEING APPOINTED AS TRUSTEES :

Regulation 16 lays down the attributes of a person to be appointed as trustee. A mutual fund shall appoint trustees in accordance with these regulations. A person shall not be eligible to be appointed as trustees unless –

(a) he should be a person of ability, integrity and standing;

(b) he has not been found guilty of moral turpitude;

(c) he has not convicted of any economic offence or violation of any securities laws and has furnished particulars as required in the prescribed form;

(d) an asset management company or any of its directors including independent directors, officers or employees shall not be eligible to act as a trustee of any mutual fund;

(e) a person already appointed as a trustee of a mutual fund can not be appointed again as a trustee of any other mutual fund;

(f) 2/3 of the trustees shall be independent persons not associated with the sponsors in any manner, whatsoever;

(g) where the companies appointed as trustee, then its directors can act as trustees of any other trust provided that the object of the trust is not in conflict with the object of the mutual fund; and

(h) prior approval of SEBI shall be necessary for the appointment of any trustee.