MFs must make monthly asset management disclosures: Sebi
25 March 2014 5:45 AM IST
The first-ever long term policy for over Rs 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 on Monday, 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.
Sebi said mutual funds should disclose the rationale while exercising their voting rights in investee companies. ‘Asset Management Companies (AMCs) shall be required to record and disclose specific rationale supporting their voting decision (for, against or abstain) with respect to each vote proposal,’ Sebi said.
The capital market watchdog has suggested selling of mutual funds through public sector banks and online to increase their penetration. In a circular issued on Monday, 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.
Sebi said mutual funds should disclose the rationale while exercising their voting rights in investee companies. ‘Asset Management Companies (AMCs) shall be required to record and disclose specific rationale supporting their voting decision (for, against or abstain) with respect to each vote proposal,’ Sebi said.
Next Story
