Sebi on Thursday asked mutual fund houses to disclose the details of investor complaints on websites, as well as in annual reports, to enable clients to make more informed decisions.”Mutual Funds shall henceforth disclose on their websites, on the AMFI website as well as in their Annual reports, details of investor complaints received by them from all sources,” the Securities and Exchanges Board of India said in a circular.
Following the circular, all Asset Management Companies (AMCs) will have to put up the data for the bygone fiscal by June 30, 2010, and for each new fiscal within two month of the close of the year.
Sebi expects the disclosure norms would improve transparency in functioning of the AMCs and would enable investors to take informed decisions.
In order to increase investor interest in MFs, the market regulator had last year abolished entry load and asked fund houses not to deduct marketing and distribution charges from the investment made by customers.
This a long awaited measure and will be welcome by all. It will be very great if this is replicated by the RBI in respect of all the Banks, TRAI in respect of all the cellular service operators and, most importantly, by the CBDT in respect of the refund and harassment-related problems of the Tax Payers.