INVESTMENT MANAGEMENT DEPARTMENT
November 20, 2006
All Mutual Funds Registered with SEBI Association of Mutual Funds in India (AMFI)
Sub: Dispatch of account statement
Please refer to Para 1 of SEBI circular no. MFD/CIR/9/120/2000 dated November 24, 2000, regarding dispatch of account statement to the unit holders.
1. Mutual Funds, at present, dispatch the account statements to the unit holders under Systematic Investment Plan (SIP)/Systematic Transfer Plan (STP)/Systematic Withdrawal Plan (SWP) on monthly/quarterly/half yearly basis, as may be applicable.
AMFI has represented to SEBI that with the increase in the number of investors opting for SIP/STP/SWP, the statement of accounts that each Mutual Fund has to send every month has increased.
The proposal of AMFI has been examined. Mutual Funds may, henceforth, dispatch the statement of accounts to the unit holders under SIP/STP/SWP once every quarter ending March, June, September and December within 10 working days of the end of the respective quarter. However, the first account statement under SIP/STP/SWP shall be issued within 10 working days of the initial investment.
In case of specific request received from investors, Mutual Funds shall provide the account statement to the investors within 5 working days from the receipt of such request without any charges. Further, soft copy of the account statement shall be mailed to the investors under SIP/STP/SWP to their e-mail address on a monthly basis, if so mandated.
2. At present the account statements are sent to unit holders only in case of a transaction in the unit holder’s account. In the interest of investors, the Mutual Funds shall provide the account statements to the unit holders who have not transacted during the last six months prior to the date of generation of account statements. The account statements in such cases may be generated and issued along with the Portfolio Statement or Annual Report of the scheme. The account statement should reflect the latest closing balance and value of the units prior to the date of generation of the account statement. Further, soft copy of the account statements shall be mailed to the investors’ e-mail address, instead of physical statement, if so mandated.
This circular is 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 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.
R K Nair