Mutual fund trustees haven’t done a good job and can get more out of the asset management companies (AMC), said M Damodaran former chairman of Sebi and chairman of Excellence Enablers, a corporate governance advisory firm.
“Every mistake that catches the attention of the regulator is a mistake that has gone past the trustees, who didn’t notice it or noticed but did not do anything about it. Trustees are the custodians of the investors’trust. They are conscience keepers of the industry,” said Damodaran at the CII Mutual Fund Summit on Friday.
He said peaceful coexistence between AMC and the trustee is not the answer and “there must be tough conversations.”