SEBI has asked fund houses to fund investor awareness programs (IAPs) from their scheme accounts.
As per SEBI norms, mutual funds/ AMCs should annually set apart at least 2 bps on daily net assets within the maximum limit of TER for investor education and awareness initiatives.
However, AMFI asked SEBI if fund houses could fund IAPs from AMC books. AMFI asked, “It may be clarified that expenditure in connection with investor education may be borne by both AMC and schemes, i.e., the expenditure towards investor education and awareness initiative need not mandatorily be charged to the schemes.”
However, SEBI in its response to AMFI clarified that fund houses can fund IAPs from AMC books only if such expenses exceed 2bps from schemes.
SEBI said, “The request of AMFI in this regard is not acceded to. Any expenses towards investor education and awareness initiatives in excess of the amount set apart through 2 bps shall be borne by the AMC.”
AMFI data shows that 35 AMCs have conducted 8,203 programmes in 211 cities covering over 4.03 lakh participants across the country in FY 2016-17.
So far, 40 AMCs have conducted 72,257 programmes in 485 cities, covering over 25 lakh participants between May 2010 and May 2017.