Independent Trustees and Investor Protection

Overview:
Trustees are the cornerstone of fiduciary safety in India’s trust-based fund model.

Key Points:

• Each Alternative Investment Fund requires a SEBI-registered independent trustee.
• Duties: ensure investment policy compliance, approve related-party deals, oversee valuation and disclosure.
• India has 30 active trustee firms; top five handle ≈ 80 percent industry assets.
• Comparable trustee coverage ratio in Luxembourg ≈ 95 percent; India now 90 percent.
• Quarterly trustee reports reduce compliance breaches by 40 percent (FY 2025 SEBI Data).
• Digital Trustee Portal launch 2026 will standardise reporting nationwide.

Truvest Capital Insight:
Independent trustees translate paper rules into practical protection.

Disclaimer: Educational content only. Not investment advice.