alleryStart learning →At least how much of the directors on the Board of an AMC must be independent?
A50 percent
B33 percent
C25 percent
D75 percent
Answer & Solution
Correct answer: A. 50 percent
1. AMC governance is designed to be free from sponsor and trustee influence.
2. At least 50 percent of the AMC directors must be independent.
3. Independent directors must not be associated with the sponsor or its subsidiaries.
4. This is separate from the independence norm on the Board of Trustees.
_Source: NISM Series V-A: Mutual Fund Distributors Workbook (Dec 2019), Ch 3 "Legal Structure of Mutual Funds in India", §3.2.4_
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