According to Regulation 16(5), an independent trustee should not be associated in any manner with the sponsor. It was clarified to all mutual funds vide SEBI Circular no MFD/CIR/11/354/2001 dated December 20, 2001 that certain categories of persons cannot be considered as independent directors of AMCs and trustee companies.
General Circular No. 20/2002, notifying amendment in Schedule XIII to Companies Act, 1956, published on 14.08.2002.
