SEBI has directed the mutual fund (MF) industry to set up an audit committee at the asset management company (AMC) level. What is the minimum number of directors required in this audit committee?

• A. 8
• B. 6
• C. 5
• D. 3

Answer: (D)

The audit committee will require a minimum of three directors and at least two-thirds of them shall be independent directors of the AMC.