SEBI : Publication of audited annual accounts by mutual funds

SECURITIES AND EXCHANGE BROAD OF INDIA

CHIEF GENERAL MANAGER
MUTUAL FUNDS DEPARTMENT

All Mutual Funds registered with SEBI Unit Trust of India (UTI) Association of Mutual Funds in India (AMFI)

Dear Sir,

Re. : Publication of audited annual accounts by mutual funds

The Securities and Exchange Board of India (Mutual Funds) Regulations, 1996 require the mutual funds to publish their half-yearly results in newspapers and disclosure of full portfolio on half-yearly basis within one month from the end of the half-year. As you are aware, sometime back, we revised and simplified the formats of both these statements so that the investors may get meaningful information about the performance and operations of the mutual fund and also to know how their funds have been deployed.

Regulation 56 of the Regulations also requires a mutual fund to publish through an advertisement its scheme-wise annual report or an abridged summary thereof not later than six months from the date of closure of relevant accounting year and a copy of the abridged annual report is required to be sent to each unitholder.

Considering the representation by AMFI, we have amended Regulation 56 so that publishing of scheme wise annual report or abridged annual report in the newspapers by the mutual funds would not be required now. However, the mutual funds shall continue to send the annual report or abridged annual report to the unitholders. Further, all mutual funds are advised to display the scheme-wise annual reports on their web sites. These web sites should also be linked with AMFI web site so that the investors and analysts can access the annual reports of all mutual funds at one place

We are enclosing a copy of the Gazette Notification dated February 20, 2002 amending the SEBI (Mutual Funds) Regulations, 1996, as mentioned above, for your information and implementation.

Yours faithfully,

P.K. Nagpal

Encl. : as above

THE GAZETTE OF INDIA

EXTRA ORDINARY

PART II SECTION 3 SUB-SECTION (ii)

PUBLISHED BY AUTHORITY

SECURITIES AND EXCHANGE BOARD OF INDIA

NOTIFICATION

MUMBAI, THE 20^th DAY OF FEBRUARY 2002

SECURITIES AND EXCHANGE BOARD OF INDIA (MUTUAL FUNDS) (AMENDMENT) REGULATIONS, 2002

S.O.219(E) In exercise of the powers conferred by sub-section (1) of Section 30 of the Securities and Exchange Board of India Act, 1992 (15of 1992), the Securities and Exchange Board of India hereby makes the following regulations namely :-

I ( i ) These regulations may be called the Securities and Exchange Board of India (Mutual Funds) (Amendment) Regulations, 2002.

( ii ) They shall come into force on the date of their publication in the Official Gazette.

II In Securities and Exchange Board of India (Mutual Funds) Regulations, 1996 :-

1. In regulation 56,

( a ) In the heading for the word ‘Publication’ the word ‘Mailing shall be substituted .

(b) in sub-regulation (1), the words “shall be published through an advertisement and an abridged scheme wise annual report” shall be omitted.

( c ) In regulation 56 ( 2 ) the words “provided further that full portfolio disclosure is not required if the full accounts are published in news papers” shall be omitted.
( d ) In sub regulation 3 of regulation 56 for the word “if published in summary form ” the word ‘mailed in abridged summary form as per sub regulation ( 1 )” shall be substituted.