SEBI simplifies offer document for MF investors
In a bid to help mutual fund investors understand scheme-related information better, Sebi has simplified the offer documents and Key Information Memorandum (KIM) of MF schemes.
By TNN |
MUMBAI: In a bid to help mutual fund investors understand scheme-related information better, Sebi has simplified the offer documents and Key Information Memorandum (KIM) of MF schemes. It has asked fund houses to split the offer document (OD) into two, making it mandatory that Statement of Additional Information (SAI) should incorporate all statutory information on the schemes.
All ODs of mutual fund schemes filed with Sebi on or after June 1, 2008 are to be prepared in the aforesaid format. The existing schemes shall adopt the SID and KIM format as soon as possible but not later than 12 months from the date of issuance of the circular, Sebi said.
Amfi had set up a committee to examine the ways of simplification of OD and KIM to make it more reader friendly. Most of the recommendations are from their report.
Sebi in a release issued on Friday said further in case of change in fundamental attributes, SID shall be revised and updated immediately after completion of duration of exit option. It also said in case of other changes, the AMC shall be required to issue an addendum and display it on the website.
���The addendum shall be circulated to all the distributors/brokers/Investor Service Centre (ISC) so that the same can be attached to all KIM and SID already in stock till it is updated,��� the release said. For instance, from now on, in case of changes in load structure, the addendum carrying the latest applicable load structure shall be attached to all KIM and SID already in stock till it is updated.
A public notice shall be given in respect of such changes in an English daily having nationwide circulation as well as in a newspaper published in the language of region where the head office of the MF is situated.
All ODs of mutual fund schemes filed with Sebi on or after June 1, 2008 are to be prepared in the aforesaid format. The existing schemes shall adopt the SID and KIM format as soon as possible but not later than 12 months from the date of issuance of the circular, Sebi said.
Amfi had set up a committee to examine the ways of simplification of OD and KIM to make it more reader friendly. Most of the recommendations are from their report.
Sebi in a release issued on Friday said further in case of change in fundamental attributes, SID shall be revised and updated immediately after completion of duration of exit option. It also said in case of other changes, the AMC shall be required to issue an addendum and display it on the website.
���The addendum shall be circulated to all the distributors/brokers/Investor Service Centre (ISC) so that the same can be attached to all KIM and SID already in stock till it is updated,��� the release said. For instance, from now on, in case of changes in load structure, the addendum carrying the latest applicable load structure shall be attached to all KIM and SID already in stock till it is updated.
A public notice shall be given in respect of such changes in an English daily having nationwide circulation as well as in a newspaper published in the language of region where the head office of the MF is situated.
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