"The Trustees of a mutual fund are the custodians of the assets". Briefly state the specific due diligence exercise to be carried out by the Trustees.

The trustees shall exercise specific due diligence as under: Obtain internal audit reports at regular intervals from independent auditors appointed by the trustees. Obtain compliance certificate at regular intervals from the asset management company. Hold meeting of trustees more frequently. Consider the reports of the independent auditor and compliance reports of asset management company at the meetings of trustees for appropriate action. Maintain records of the decisions of the trustees at their meetings and of the minutes of the meetings. Prescribe and adhere to a code of ethics by the trustees, Asset Management Company and its personnel. Communicate in writing to the asset management company of the deficiencies and checking on the rectification of deficiencies.