Simplification and streamlining of Offer Documents of Mutual Fund Schemes
- In order to enhance ease of preparation of the Scheme Information Document (SID) by mutual funds and increase its readability for investors, SEBI in consultation with AMFI, undertook an exercise to revamp the format of SID.
- Based on the suggestions of AMFI and the recommendations of the Mutual Fund Advisory Committee, the format of SID was simplified and rationalized. The revised format (placed at Annexure ‘A’) is aimed at streamlining the dissemination of relevant information to investors, rationalizing the preparation of SID and facilitating its periodic updation by mutual funds.
- Accordingly, the format of SID specified through circular dated May 23, 2008 and incorporated as Clause 1.1.2 of Master Circular dated May 19, 2023, stands modified.
- Applicability: The revised format for SID, KIM and SAI shall be adopted as under:
a. Updated format for SID/KIM/SAI to be implemented w.e.f. April 01, 2024.
b. Draft SIDs to be filed with SEBI on or before March 31, 2024 or SIDs already filed with SEBI (final observations yet to be issued) or SIDs for which the final observations have already been received from SEBI (if launched on or before March 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 April 30, 2024 with data as on March 31, 2024.
All updated/revised SIDs shall be made available on the website of SEBI/AMFI/AMCs within the timelines specified above. - Further, in order to give effect to the revisions in the SID, the following clauses of SEBI Master circular dated May 19, 2023 stand modified, as detailed below:
| Sl. No. | Clauses of Master Circular | Modified clause |
| 1. | Format 5A – SID Format (referred to in clause 1.1.2) | The format of SID specified under Formats as mentioned at clause 1.1.2 (Format 5A), stands revised as attached to this circular. |
| 2. | Clause 5.8.1.2 | Scheme’s portfolio holdings (top 10 holdings by issuer and fund allocation towards various sectors) shall be disclosed by way of a functional web link where the said data shall be hosted. |
| 3. | Clause 5.8.2.1 | 5.8.2.1 The aggregate investment in the scheme by Concerned Scheme’s Fund Manager(s) 5.8.2.1A The following disclosures shall be provided in SAI of the MF scheme: 1. The aggregate investment in the scheme under the following categories: a) AMC’s Board of Directors and b) Other key personnel. |
| 4. | Clause 4.4.3.5 | Creation of segregated portfolio shall be optional and at the discretion of the AMC. It should be created only if the Scheme Information Document (SID) of the scheme has enabling provision for segregated portfolio with detailed disclosures made in Statement of Additional Information (SAI). All new schemes shall have the enabling provision included in the SID for creation of segregated portfolio |
| 5. | Clause 4.10.3.1 (iv) | Provision shall be disclosed by the AMC in Scheme Information Document (SID) with detailed disclosures made in Statement of Additional Information (SAI). |
| 6. | Clause 5.16.1A | AMCs shall disclose risk-o-meter of the Benchmark on: a. Front page of initial offering application form, Scheme Information Documents (SID) and Key Information Memorandum (KIM); and b. Common application form – along with the information about the scheme |
6. In line with the new SID format, AMFI shall carry out the necessary changes in the formats of KIM and SAI in consultation with SEBI, within two months from the date of this circular.
7. 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.
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