Certification Programme and Disclosure Standards
Summary
This circular mandates that mutual funds appoint only AMFI-certified agents and distributors effective November 1, 2001. It requires mutual funds to publish unaudited half-yearly results and portfolio details on their websites within one month of the half-year close. Compliance with these certification and disclosure requirements must be reported to SEBI in periodic reports.
Text
It has been decided to make it mandatory for all mutual funds to appoint agents/distributors who have obtained AMFI certification, w.e.f. November 1, 2001.
The existing agents/distributors are expected to pass the certification programme by March 31, 2003.
For implementing the above, the mutual funds shall place the list of existing agents/distributors as on October 31, 2001 before their Boards of AMCs and Trustees.
Mutual Funds shall monitor the activities of their agents/distributors so that they may not indulge in any kind of malpractice or unethical practice while selling/marketing mutual funds units.
It has also been decided that the existing and new employees of mutual funds particularly those who are involved in sales and marketing shall be encouraged to pass the certification process by December 2002.
Compliance of the above requirements and progress made in their implementation shall be reported to SEBI in the quarterly compliance test reports of AMCs and half-yearly reports of the Trustees.
It has been decided that the mutual funds shall also post these results in the prescribed format on their web sites.
All mutual funds shall display these results on AMFI web site (www.amfiindia.com) before the expiry of one month from the close of each half-year.
Compliance of these requirements may be reported to SEBI while sending a copy of half-yearly results in accordance with Regulation 58(2)(b).
Mutual funds shall also disclose the portfolios on their web sites in the prescribed format before the expiry of one month from the close of each half-year.
A copy of the portfolios shall also be filed with SEBI at the time of submission of half-yearly results.
Source: SecMarx — Certification Programme and Disclosure Standards. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.