Disclosure of the points w.r.t schemes which are subscribed by the investor

Last updated: 01 May 2021

Save Share

Quick Summary

The Securities and Exchange Board of India (SEBI) has issued a new circular, effective from June 1, 2021, requiring mutual funds and Asset Management Companies (AMCs) to provide enhanced disclosures to investors. These disclosures will be specific to schemes in which an investor currently holds units. This includes the risk-o-meter of the scheme and its benchmark, alongside performance comparisons. Investors will also receive scheme portfolio details via email with their regular statements.

Securities and Exchange Board of India

CIRCULAR

SEBI/HO/IMD/IMD-II DOF3/P/CIR/2021/555

April 29, 2021

All Mutual Funds/
Asset Management Companies (AMCs)/
Trustee Companies/Boards of Trustees of Mutual Funds/
Association of Mutual Funds in India (AM FI)

Sir/ Madam,

Subject: Disclosure of the following only w.r.t schemes which are subscribed by the investor:

a. risk-o-meter of the scheme and the benchmark along with the performance disclosure of the scheme vis-à-vis benchmark and

b. Details of the portfolio

1. Please refer to SEBI Circular No. Cir/IMD/DF/13/2011 dated August 22, 2011, and all other subsequent circulars which deal with the disclosure of portfolio and performance of the scheme.

2. Based on the recommendation of Mutual Fund Advisory Committee (MFAC) and to enhance the quality of disclosure w.r.t. risk and performance and portfolio of the schemes, without creating information overload on the investor, it has been decided that the following disclosures shall be made to the investor only for the schemes in which the unitholders are invested as on the date on which the disclosures are stipulated:

a) Mutual Fund/AMCs shall also disclose risk-o-meter of the scheme and benchmark while disclosing the performance of scheme vis-à-vis benchmark and

b) Mutual Funds/ AMCs shall send the details of the scheme portfolio while communicating the fortnightly, monthly and half-yearly statement of scheme portfolio via email.

3. This circular shall be applicable with effect from June 1, 2021.

4. This circular is issued in exercise of the powers conferred under Section 11 (1) of the Securities and Exchange Board of India Act 1992, read with the provision of Regulation 77 of SEBI (Mutual Funds) Regulation, 1996 to protect the interests of investors in securities and to promote the development of, and to regulate the securities market.

Yours faithfully,

Bithin Mahanta
General Manager
Tel no.: 022-26449634
Email: bithinm@sebi.gov.in

FAQ :

The circular aims to enhance the quality of disclosures regarding risk, performance, and portfolio of mutual fund schemes to investors without causing information overload.

These new disclosure requirements are applicable from June 1, 2021.

Investors will receive the risk-o-meter of the scheme and its benchmark, performance disclosure of the scheme versus its benchmark, and details of the scheme portfolio.

No, these disclosures will only be made for schemes in which the unitholder is invested as of the date of disclosure.

Mutual Funds/AMCs will send the details of the scheme portfolio via email when communicating the fortnightly, monthly, and half-yearly statements of the scheme portfolio.

Notification No : SEBI/HO/IMD/IMD-II DOF3/P/CIR/2021/555
Source : https://www.sebi.gov.in/legal/circulars/apr-2021/disclosure-of-the-following-only-w-r-t-schemes-which-are-subscribed-by-the-investor-a-risk-o-meter-of-the-scheme-and-the-benchmark-along-with-the-performance-disclosure-of-the-scheme-vis-vis-ben-_49992.html

244 Views Comment Share Investments & Personal Finance Report

Notification posted by

CCI News Desk

Finance news reporter covering taxation, GST, income tax, business compliance, and economy updates. I simplify complex financial topics into easy-to-understand articles for professionals, taxpayers, and business owners on leading finance and tax platforms.

Comments