Securities and Exchange Board of India (SEBI) vide SEBI/HO/IMD/DF2/CIR/P/2017/125 dated November 30, 2017 issued a circular in order to strengthen the governance structure for mutual funds (MFs) with respect to appointment of Independent Trustee of Mutual Funds and Independent Director of Asset Management in terms of Regulation 16(5) and Regulation 21(1) respectively of SEBI (Mutual Funds) Regulations, 1996 it has been decided that the tenure of Independent Trustee of Mutual Funds Independent Director of Asset Management Company who shall hold office for maximum of 2 terms with each term not exceeding a period of 5 consecutive years, however, such individuals  shall be eligible for re-appointment after a cooling-off period of 3 years.

Also with respect to appointment of auditors in terms of Regulation 55(1) of SEBI (MFs) Regulation, 1966, it has been decided that no MF shall appoint an auditor for more than 2 terms of maximum 5 consecutive years, however, such auditor may be re-appointed after cooling off period of 5 years.