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SEBI disclosure norms for mutual funds effective from 1 April

The mutual fund players will now have to disclose the specific rationale behind supporting their voting decision

April 02, 2014 1:33 IST | India Infoline News Service
Mutual fund houses now require to make monthly disclosures about assets managed by them as well as explain the rationale behind exercising their voting rights in firms, according to SEBI (Securities and Exchange Board of India) norms effective from 1 April 2014.
In order to enhance transparency and increase the quality of the disclosures for investors, mutual fund houses will now have to disclose the Assets Under Management (AUM) on monthly basis on their website and also share the same with Association of Mutual Funds in India (AMFI).
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.
AMCs will also disclose the AUM on their website (in spreadsheet format) and forward to AMFI within 7 working days from the end of the month. AMFI in turn will also disclose the consolidated data in this regard on its website (in spreadsheet format), SEBI added.
Besides, the mutual fund players will now have to disclose the specific rationale behind supporting their voting decision.
The fund houses would have to make disclosure of votes cast on their website on a quarterly basis, within 10 working days from the end of the quarter. Further, they would make the disclosures on voting details in their annual report.
The rules were recently framed by SEBI as part of its first-ever long term policy for the mutual fund industry.

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