SECURITIES AND EXCHANGE BOARD OF INDIA
Mittal Court, B Wing, First Floor,
224, Nariman Point, Mumbai 400 021
All Mutual Funds Registered with SEBI Unit Trust of India/AMFI
Dear Sirs,
As you are aware, vide our circular letter no MFD/CIR/10/039/2001 dated February 9, 2001, we advised the mutual funds to revise and update the offer documents of open ended schemes at least once in two years.
As you know, we have been issuing standard observations (generally as Annexure II) at the time of communicating scheme specific observations to mutual funds in accordance with Regulation 29(2) to ensure a minimum level of disclosures in the offer documents. Due to amendments to regulations and with a view to improve the disclosure standards, these observations are revised from time to time. Therefore, it is essential that the mutual funds are aware of these latest observations while revising their existing scheme offer documents and memoranda i.e. abridged offer documents. A copy of these observations is enclosed.
We have also put these observations on SEBI website, www.sebi.gov.in so that you may refer to them while revising any scheme offer document in the future. We may revise these observations from time to time and in that case the date of revision will also be mentioned. A copy of the revised offer document and memorandum along with a fresh due diligence certificate in accordance with requirements of standard offer document must be filed with SEBI for the purpose of records only. The same due diligence certificate shall be reproduced in the offer document by the mutual funds. Other requirements as specified in our aforesaid circular letter dated February 9, 2001 shall also be complied with.
While filing the revised offer document with SEBI, you are advised to highlight and clearly mention the page number of the offer document on which each standard observation has been incorporated. Please also mention the date of these observations as given in our website.
You may use the same set of standard observations as given in our website while filing offer document for launching a new scheme to expedite the process in this regard as specified in the Regulations. Please also follow the requirements as mentioned in the above paragraph.
This circular letter is being issued in accordance with the provisions of Regulation 77 of the SEBI (Mutual Funds) Regulations, 1996. You are advised to report its compliance to SEBI latest by August 9, 2001 and keep your Boards of asset management company and trustees informed.
Yours faithfully
P. K. NAGPAL
CHIEF GENERAL MANAGER
MUTUAL FUNDS DEPARTMENT
