The Securities and Exchange Board of India (SEBI) has come out with a circular on the tenure of independent trustees and independent directors and auditors of mutual funds. Accordingly, an independent trustee and independent director shall hold office for a maximum of two terms with each term not exceeding a period of five consecutive years. No independent trustee or independent director shall hold office for more than two consecutive terms, however such individuals shall be eligible for re-appointment after a cooling-off period of three years.