SEBI Circular on Investor Charter and disclosure of Investor Complaints by Mutual funds on their websites and AMFI website

Securities and Exchange Board of India

Circular No. SEBI/HO/IMD-II/IMD-II_DOF10/P/CIR/2021/00677

Dated: December 10, 2021

To,
All Mutual Funds (MFs)/
Asset Management Companies (AMCs)/
Trustee Companies/ Board of Trustees of Mutual Funds/
Association of Mutual Funds in India (AMFI)

Dear Sir/Madam,

Subject: Publishing Investor Charter and disclosure of Investor Complaints by Mutual funds on their websites and AMFI website

1) SEBI vide Circular No. Cir/IMD/DF/2/2010 dated May 13, 2010 has advised AMCs to disclose details of investor complaints on annual basis in a prescribed format within 2 months of the close of the financial year.

2) In partial modification to the aforesaid circular, it has been decided that all the Mutual Funds shall disclose the details of investor complaints on their respective websites as well as on AMFI website on a monthly basis, as per the format enclosed at Annexure – ‘A’ to this circular. The information shall be made available within 7th of succeeding month.

3) Further, in order to facilitate awareness of investors about various activities which an investor deals with, SEBI has prepared an Investor Charter for Mutual Funds, inter-alia, detailing the services provided to Investors, Rights of Investors, various activities of Mutual Funds with timelines, DOs and DON’Ts for Investors and Grievance Redressal Mechanism which is placed at Annexure ‘B’.

4) In this regard, Mutual Funds are advised to bring the Investor Charter for Mutual Funds to the notice of their unit holders (existing as well as new unit holders) through disclosing the Investor Charter on their websites, making them available at prominent places in the office, etc.

5) Further, Mutual Funds are advised to display link/option to lodge complaint with them directly on their websites and mobile apps. Additionally, link to SCORES website/ link to download mobile app (SEBI SCORES) shall also be provided on their website.

6) These disclosure requirements are in addition to those already mandated by SEBI. The provisions of this circular shall come into effect from January 01, 2022.

7) This circular is issued in exercise of 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) Regulations, 1996 to protect the interests of investors in securities and to promote the development of, and to regulate the securities markets.

Yours faithfully,

Vikash Narnoli
Deputy General Manager
Investment Management Department