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Introduction: The Securities and Exchange Board of India (SEBI) has recently issued a circular, SEBI/HO/IM D/IMD-RAC-2/P/CIR/2024/000015, dated March 12, 2024. This circular addresses the simplification and streamlining of Offer Documents for Mutual Fund Schemes, bringing about crucial changes in the guidelines.

Detailed Analysis:

1. Background and Previous Circular (Paragraphs 1-2): SEBI had earlier introduced a simplified format for Scheme Information Documents (SID) through circular SEBI/H0/IMD/IMD-RAC-2/P/CIR/2023/00175 on November 01, 2023.

2. Revised Applicability Timeline (Paragraphs 2a-2d): In response to a request from the Association of Mutual Funds in India (AMFI), SEBI has decided to revise the date of applicability of the provisions. The updated format for SID/KIM/SAI will now be implemented from June 01, 2024. Draft SIDs must be filed with SEBI by May 31, 2024, and the old format can be used for existing SIDs until June 30, 2024, with necessary updates.

3. Extension for SID and KIM Updation (Paragraph 2d): The circular refers to para 1.2.1 and 1.2.4 of the Master circular dated May 19, 2023, regarding the updation of SID and KIM. An extension until June 30, 2024, is granted for the scheduled updation of SID and KIM specifically for the half-year ended March 31, 2024.

4. Regulatory Authority and Purpose (Paragraph 3): SEBI issues this circular under the powers conferred by Section 11(1) of the Securities and Exchange Board of India Act, 1992, read with Regulation 77 of the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996. The objective is to protect the interests of investors and regulate the securities market’s development.

Conclusion: SEBI’s recent circular brings important changes to the timeline for implementing simplified Mutual Fund Scheme Information Documents. Mutual Funds, Asset Management Companies, Trustee Companies, and the Association of Mutual Funds in India are required to adhere to the updated guidelines. This extension allows for a smoother transition and ensures uniform compliance across the industry, ultimately safeguarding the interests of investors in the securities market. All stakeholders are urged to stay informed and promptly update their documents to align with the revised deadlines.

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Securities and Exchange Board of India

Circular No. SEBI/HO/IM D/IMD-RAC-2/P/CIR/2024/000015 Dated: March 12, 2024

To
All Mutual Funds (MFs)/
Asset Management Companies (AMCs)I
Trustee Companies/ Board of Trustees of Mutual Funds!
Association of Mutual Funds in India (AMFI)

Dear Sir / Madam,

Sub: Simplification and streamlining of Offer Documents of Mutual Fund Schemes Extension of timelines

1. SEBI vide circular SEBI/H0/1MD/IMD-RAC-2/P/CIR/2023/00175 dated November 01, 2023 prescribed simplified format of Scheme Information Document (SID).

2. Pursuant to request submitted by AMFI and discussions thereafter, it has been decided to revise the date of applicability of provisions at para 4 of aforesaid circular as under:

a. Updated format for SID/KIM/SAI to be implemented w.e.f. June 01, 2024.

b. Draft SIDs to be filed with SEBI on or before May 31, 2024 or SIDs already filed with SEB1 (final observations yet to be issued) or SIDs for which the final observations have already been received from SEBI (if launched on or before May 31, 2024), can use the old format of SID, provided that the SIDs are updated as per timeline mentioned at (c) below.

c. For Existing SIDs – by June 30, 2024 with data as on May 31, 2024.

d. Reference is drawn to para 1.2.1 and 1.2.4 of Master circular dated May 19, 2023 w.r.t updation of SID and KIM within 1 month from the end of half year i.e. April 30, 2024 for half year ended March 31, 2024. In order to avoid duplication of efforts of AMCs as well as to ensure uniform implementation of revised formats, the scheduled updation of SID and KIM for half year ended March 31, 2024, may be carried out by AMCs by June 30, 2024. This extension shall be applicable specifically for half year ended March 31, 2024 only.

All updated/revised SIDs shall be made available on the website of SEBI/AMFI/AMCs within the timelines specified above.

3. This circular is issued in exercise of the powers conferred under Section 11 (1) of the Securities and Exchange Board of India Act, 1992, read with Regulation 77 of the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996 to protect the interests of investors in securities and to promote the development of, and to regulate the securities market.

Your faithfully

Vishakha More
Deputy General Manager
Tel no. 022-26449206
Email: vishkham@sebi.gov.in

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