Context
Two separate expert groups have been constituted by the SEBI ( Security and Exchange Board of India) to examine the roles, eligibility criteria and functions of sponsors and trustees at asset management companies.
Asset management companies
- AMCs also referred to as money managers or money management firms.
- AMCs are those companies that pooled funds from the public or different clients and then invest it into a variety of securities and assets such as stocks, bonds, real estate, master limited partnership, and more.
- They provide investors with more diversification and investing options as they carry a large pool of resources than the individual investor could access on their own.
- Different AMCs vary in terms of their size and operations, from a few hundred million dollars in AUM to giant investment companies that offer ETFs and Mutual funds and have trillions in AUM.
SEBI
- SEBI is a statutory body and a market regulator which regulates the securities and commodity market in India under the ownership of the ministry of finance.
- The body was established on 12 April 1988 and got statutory status with the SEBI Act,1992.
- SEBI was established with the objective to protect the interest of investors in securities and promoting and regulate the securities market.
- Its headquarter is situated in Mumbai and it has four regional offices located in Ahmedabad, Kolkata, Chennai, and Delhi.
- The functions of SEBI are carried out by the board of members consisting of a chairman and several other part-time and full-time members.
- Among these, the chairman is nominated by the union government and the other includes two members from the finance ministry, one from RBI and five other members are nominated by the center
- Ms. Madhabai Puri Buch is the current chairman of SEBI, and also the first woman to head the regulator.
