Clarification regarding Investor Education and Awareness Initiatives
Summary
This circular clarifies that investor education and awareness initiatives under SEBI regulations include financial inclusion initiatives approved by SEBI. It references the requirement for Asset Management Companies to allocate at least 2 basis points of daily net assets for these purposes annually. The clarification is issued under Section 11(1) of the SEBI Act, 1992, to protect investor interests.
Text
AMCs are required to annually set apart at least 2 basis points on daily net assets within the maximum limit of total expense ratio for investor education and awareness initiatives as per regulation 52 of SEBI (Mutual Fund) Regulations, 1996.
Initiatives under ‘Investor Education and Awareness’ include financial inclusion initiatives, as may be approved by SEBI from time to time.
Source: SecMarx — Clarification regarding Investor Education and Awareness Initiatives. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.