Securities and Exchange Board of India (SEBI) vide Notification/Circular No. SEBI/HO/IMD/DF3/CIR/P/2021/014 dated 29th January 2021, has published "Circular on Revision of Monthly Cumulative Report" in exercise of the powers conferred under Section 11 (1) of the Securities and Exchange Board of India Act, 1992, read with Regulation 77 of the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996.
The Circular was addressed to:
- All Mutual Funds(MFs)/
- Asset Management Companies (AMCs)/
- Trustee Companies/ Board of Trustees of Mutual Funds/
- Association of Mutual Funds in India (AMFI)
Need of the Circular
To protect the interests of investors in securities, to promote the development, regulate the securities market and bring transparency in reporting of segregated portfolios.
Timeline / Applicability
From January 2021 onwards, AMCs will have to submit the monthly cumulative reporting (MCR) to Sebi in the new format.
Provisions under Circular
SEBI, the Capital markets regulator tweaked the monthly revised cumulative reporting format, whereby asset management companies (AMCs) will have to disclose the creation of segregated portfolios.
Key Highlights
- Under the modified monthly cumulative report or MCR, AMCs will have to disclose the number of segregated portfolios created as well as net assets under management in such segregated portfolios.
- Mutual funds need to disclose the number of schemes in each segment, including open ended schemes, close ended schemes and equity oriented schemes.
- Submission of information pertaining to the number of folios, funds mobilized, repurchase or redemption, net inflow or outflow, net as well as an average net asset under management.
Kindly note that revised formats are attached with the circular (link shared below)
Link: Click Here
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