SEBI Issues Strict Disclosure Norms For Mutual Funds


MUMBAI: SEBI asked mutual fund houses to make monthly disclosures about assets managed by them and explain the rationale behind exercising their voting rights in companies, as part of long term policy for the industry effective from April 1.

The first-ever long term policy for over 9 lakh crore mutual fund industry, aimed to make it an attractive investment proposition for retail investors, also provides for bolstering distribution channels.

The capital market watchdog has suggested selling of mutual funds through public sector banks and online to increase their penetration.

In a circular issued, SEBI said mutual funds would be required to disclose certain additional details about their Assets Under Management (AUM) on a "monthly basis".

This would include monthly disclosure of AUM from different categories of schemes, AUM from places beyond top-15 cities, contribution of sponsor and its associates in AUM, contribution from different types of investors (retail, corporate etc), state-wise contribution and AUM from sponsor group or non-sponsor group distributors.

Besides, the data has to put on a consolidated basis on website of Association of Mutual Funds of India (AMFI) within seven working days of the month.

This circular would be effective from April 1, 2014.

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Source: PTI