Securities And Exchange Board Of India
CIRCULAR
Cir/IMD/DF/2/2010
May 13, 2010
All Mutual Funds, Asset Management Companies (AMCs) and Association of Mutual Funds of India
Sir/Madam,
Sub: Disclosure of investor complaints with respect to Mutual Funds
1. SEBI has received feedback from investors and Investors’ Associations to improve transparency in the ‘grievance redressal mechanism’. Based on the same, transparency in ‘grievance redressal’ is identified as a key area to augment investor protection. It is envisaged that transparency will also improve the general functioning of the market by providing investors the wherewithal to make an informed choice.
2. Accordingly, it has been decided that 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 said details should be vetted and signed off by the Trustees of the concerned Mutual Fund.
3. The format for the aforesaid disclosure is given as Annexure to this Circular.
4.The Mutual Funds are accordingly advised to :
a.Upload the report for the year 2009-10 by June 30, 2010.
b. Upload the report for the following financial years within 2 months of the close of the financial year.
c. Include the report in their annual reports, as part of the Report of the Trustees, beginning with the annual report for the year 2009-10.
5. This Circular is being issued in exercise of powers conferred under Section 11 (1) of the Securities and Exchange Board of India Act, 1992, read with the provisions of Regulation 77 of the SEBI (Mutual Funds) Regulations, 1996, to protect the interests of investors in securities and to promote the development of, and to regulate the securities market.
Yours faithfully,
