Master Circular for Mutual Funds
Summary
This section establishes the Master Circular for Mutual Funds to consolidate regulatory requirements issued by SEBI up to March 31, 2023. It specifies that the circular comes into force immediately upon issuance and rescinds previous circulars listed in the appendix while preserving pending actions and liabilities. The document outlines applicability dates for specific provisions and cites Section 11(1) of the SEBI Act as the legal authority. This section mandates the preparation and filing of Scheme Information Documents (SID) and Statements of Additional Information (SAI) with SEBI. It outlines specific procedures for drafting, uploading, and updating these documents, including timelines for public availability and regulatory filings. The text also defines the validity period of SEBI's observations on SIDs and requires trustee certifications for new schemes. This section mandates trustee certification for new mutual fund products and outlines standard observation disclosure requirements. It prescribes the format, availability, and benchmarking principles for Key Information Memorandums (KIM) and scheme indices. Additionally, it defines New Fund Offer (NFO) durations, investment o
Text
SEBI has incorporated provisions of circulars issued till March 31, 2023 in this Master Circular to enable stakeholders to have access to all applicable regulatory requirements at one place.
This Master Circular shall come into force from the date of its issuance and the circulars mentioned in Appendix shall stand rescinded with the issuance of the Master Circular.
Directions or other guidance issued by SEBI specifically applicable to Mutual Funds shall continue to remain in force in addition to the provisions of any other law for the time being in force.
Terms not defined in this Master Circular shall have the same meaning as provided under the relevant Regulations.
Anything done or any action taken under the rescinded circulars, including registrations, approvals, fees collected, inspections, or investigations commenced prior to rescission, shall be deemed to have been done under the corresponding provisions of this Master Circular.
Any application made to SEBI under the rescinded circulars prior to such rescission and pending before it shall be deemed to have been made under the corresponding provisions of this Master Circular.
The previous operation of the rescinded circulars, rights, privileges, obligations, liabilities, penalties incurred, or any investigation and legal proceeding shall remain unaffected as if the rescinded circulars have never been rescinded.
Entities required to ensure compliance with various provisions shall submit necessary reports as envisaged in this Master Circular on a periodic/continuous basis.
The provisions mentioned at Paragraph 5.27 of this Master Circular shall be applicable with effect from July 01, 2023.
This Master Circular is issued in exercise of powers conferred under Section 11(1) of the Securities and Exchange Board of India Act, 1992 to protect the interests of investors in securities and to promote the development of, and to regulate the securities market.
This Master Circular is available on the SEBI website at https://www.sebi.gov.in/ under the category “Legal -> Master Circulars”.
The Offer Document shall have two parts i.e. Scheme Information Document (SID) and Statement of Additional Information (SAI). SID shall incorporate all information pertaining to a particular scheme. SAI shall incorporate all statutory information on Mutual Fund.
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Source: SecMarx — Master Circular for Mutual Funds. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.