Enhancing disclosures, investor education & awareness campaign, developing alternative distribution channels for Mutual Fund products, etc.
Summary
This circular mandates Mutual Funds to disclose detailed Assets Under Management (AUM) data and voting records on their websites and with AMFI. It requires the publication of investor education materials in regional languages and the enhancement of online distribution channels. Additionally, it clarifies prudential limits for sectoral exposure in debt-oriented mutual funds by excluding certain short-term deposits.
Text
Mutual Funds shall disclose AUM from different categories, contributions from B-15/T-15 cities, sponsor associates, investor types, distributors, and state-wise data on their website and share with AMFI.
Mutual Fund wise and consolidated data on the above parameters shall be disclosed on AMFI website as per formats placed at annexure A1 and A2.
AMCs shall disclose the above on their website and forward to AMFI within 7 working days from the end of the month.
AMCs shall be required to record and disclose specific rationale supporting their voting decision (for, against or abstain) with respect to each vote proposal.
AMCs shall additionally be required to publish summary of the votes cast across all its investee company and its break-up in terms of total number of votes cast in favor, against or abstained from.
AMCs shall be required to make disclosure of votes cast on their website on a quarterly basis, within 10 working days from the end of the quarter.
On an annual basis, AMCs shall be required to obtain Auditor's certification on the voting reports being disclosed by them and submit to trustees and disclose in annual report & website.
Board of AMCs and Trustees of Mutual Funds shall be required to review and ensure that AMCs have voted on important decisions affecting investor interest and report confirmation to SEBI in half yearly trustee reports.
Mutual Funds shall mandatorily also make available printed literature on mutual funds in regional languages for investor awareness and education.
Mutual Funds to introduce Investor awareness campaign in regional languages both in print and electronic media.
Mutual Funds/ AMCs need to develop a system for active support to PSU banks to distribute Mutual Fund products through them.
All Mutual Funds should enhance the online investment facility and tap the internet savvy users to invest in Mutual Funds by providing an online investment facility on their websites.
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Source: SecMarx — Enhancing disclosures, investor education & awareness campaign, developing alternative distribution channels for Mutual Fund products, etc.. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.