In a bid to improve transparency, SEBI has asked AMCs to put additional disclosures in scheme information document (SID), key information memorandum (KIM) of existing as well as new schemes, said a SEBI circular issued today.
Here are the additional disclosures which will be a part of all SIDs/KIMs:
- The tenure for which the fund manager has been managing the scheme along with the name of the fund manager
- Scheme’s portfolio holdings (top 10 holdings by issuer and fund allocation towards various sectors), along with a website link to obtain scheme’s latest monthly portfolio holding
- Expense ratio of underlying schemes in case of fund of funds
- Scheme’s portfolio turnover ratio
Additional disclosures which will be a part of SID:
- The aggregate investments made by AMC’s board of directors, fund manager, key managerial personnel in all schemes
- Illustration of impact of expense ratio on scheme’s returns (by providing simple examples).
Further, AMCs will be required to publish separate SID/KIM for each MF scheme on their websites.
Also, AMCs will have to have a dashboard on their websites which will provide the details of scheme performance. They will have to disclose the scheme’s AUM, investment objective, expense ratio, portfolio details, scheme’s past performance, among other things. AMCs will have to provide this data in a comparable, downloadable (spreadsheet) and machine readable format, said the SEBI circular.
The circular is effective May 1.
