The capital markets regulator has proposed to increase the role and accountability of mutual fund trustees in a bid to safeguard unitholders’ interests.

In addition, the regulator has suggested increasing the accountability of the board of the asset management companies (AMC).

Sebi has proposed a common platform for the dissemination of public announcements by mutual funds.

In order to have an independent review mechanism for the decisions of the AMCs across all products and services, Sebi has proposed to mandate that a “unit holder protection committee should be constituted by the board of the AMC”.

In its consultation paper, Sebi has suggested that trustees of mutual funds should focus on market abuse by AMCs and its employees and mis-selling by the AMC to increase its asset base.

Trustees should be responsible for the fairness of fees and expenses charged by the AMC, compare its performance with peers and ensure that the AMC’s sponsor is not getting any undue advantage.

The trustees should be responsible for reviewing the steps taken by AMCs for the folios which do not contain all KYC attributes with bank details.

Sintex recast plan approved

The National Company Law Tribunal (NCLT) has approved the joint bid of Reliance Industries and Assets Care & Reconstruction Enterprise (ACRE) for debt-ridden textiles maker Sintex Industries.

The Ahmedabad bench of the NCLT in an oral order on Friday approved the plan.

The approved plan contains the reduction of share capital and delisting of equity shares with nil value. The company would make updated disclosure upon the written order being made available.

According to reports, RILACRE had offered around Rs 3,650 crore.