On Sep. 27, IND SEBI proposed amendments in relation to disclosure.
IND SEBI issued proposal on disclosure of expenses, half yearly returns, yield, risk-o-meter of schemes of mutual funds, to improve transparency, ease of understanding.
Proposal includes draft circular that includes amendments to a related master circular.
Follows IND SEBI May 2023 published master circular for mutual funds, see #173415.
Overview of Proposal
Separate disclosures for expense ratios, returns, yields for direct and regular plans; disclosures must be in a standardized format for easy comparison and understanding.
Risk of mutual fund schemes will be depicted through a color-coded risk-o-meter; six risk levels will be represented with distinct colors, ranging from low to very high risk.
Any changes in the risk-o-meter must be communicated through standardized notices.
Consultation End
The draft circular is open for public comments until Oct. 18, 2024.
Nov. 2024 IND SEBI Finalized Circular
On Nov. 5, 2024, IND SEBI issued finalized circular, with respect to the proposal above.
The provisions of this finalized circular come into effect on Dec. 5, 2024.
