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Home / Markets / Stock Markets /  Sebi introduces investor charters for mutual funds, PMS and AIFs mandates complaint disclosure
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The Securities and Exchange Board of India (Sebi) on Friday released separate investor charters for mutual funds, portfolio management services (PMS) providers and alternative investment funds (AIFs), assigning rights and responsibilities for investors.

MFs and PMS managers must display investor charters and investor complaint data on their websites, including complaints made on Sebi’s SCORES complaint redressal system, while AIFs must disclose the same in the private placement memorandums of their schemes.

The charter for MF investors includes rights to receive redemption proceeds in a timely manner; be informed about changes in the fundamental attributes of schemes; and timely disclosure of daily net asset values, portfolio and performance of each scheme, including assets under management, investment objective and expense ratios.

Their responsibilities include reading scheme-related documents; providing updated KYC details; and not signing blank cheques or blank signed transaction instructions.

A previous Sebi circular required MFs to update complaint data within two months of the close of each financial year. The new circular mandates this disclosure within seven days of the close of each month. The same timeline has been prescribed for PMS managers too. AIFs have to compile this data within seven days from the close of each quarter.

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