Disclosure of investor complaints with respect to Mutual Funds
Summary
SEBI mandates Mutual Funds to disclose investor complaint details on their websites, the AMFI website, and in Annual Reports. The disclosure must be vetted and signed off by the Trustees of the concerned Mutual Fund. Initial reports for 2009-10 were required by June 30, 2010, with subsequent reports due within two months of the financial year's close.
Text
SEBI has received feedback from investors and Investors’ Associations to improve transparency in the ‘grievance redressal mechanism’. Based on the same, transparency in ‘grievance redressal’ is identified as a key area to augment investor protection.
Mutual Funds shall henceforth disclose on their websites, on the AMFI website as well as in their Annual Reports, details of investor complaints received by them from all sources. The said details should be vetted and signed off by the Trustees of the concerned Mutual Fund.
The format for the aforesaid disclosure is given as Annexure to this Circular.
Upload the report for the year 2009-10 by June 30, 2010.
Upload the report for the following financial years within 2 months of the close of the financial year.
Include the report in their annual reports, as part of the Report of the Trustees, beginning with the annual report for the year 2009-10.
This Circular is being issued in exercise of powers conferred under Section 11 (1) of the Securities and Exchange Board of India Act, 1992, read with the provisions of Regulation 77 of the SEBI (Mutual Funds) Regulations, 1996, to protect the interests of investors in securities and to promote the development of, and to regulate the securities market.
Source: SecMarx — Disclosure of investor complaints with respect to Mutual Funds. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.