SEBI announces a disclosure mandate for AMCs

26 Aug 2022 , 08:06 AM

The disclosure framework for Asset Management Companies (AMCs), released on Thursday by capital markets regulator  Securities and Exchange Board of India (SEBI), requires a scheme-wise declaration of interests in securities of entities that are not considered “associates.”

This happened after SEBI changed the rules governing mutual funds earlier this month to exclude sponsors who invest in other corporations on behalf of insurance policy beneficiaries or other beneficiaries from the term “associates.”

According to the rules, an associate is anybody who, alone or in conjunction with relatives, directly or indirectly exercises control over the trustee or the AMC, among others.

AMCs would be required to disclose their interests in securities of entities that are not considered “associates” as of the last day of each quarter, according to the new framework, according to a circular from SEBI.

Additionally, investment disclosure will include investment value broken down by ISIN and value expressed as a proportion of the scheme’s Assets Under Management (AUM).

Within a month after the end of each quarter, such information shall be provided on the websites of the relevant AMCs and the Association of Mutual Funds in India (AMFI).

43 mutual fund companies currently manage assets totalling close to Rs38 lakh crore.

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