Securities and Exchange Board of India (Sebi) on Thursday said mutual fund houses need to put complete details about investor's complaints on public domain.
"It has been decided that mutual funds shall henceforth disclose on their websites, on the Amfi website as well as in their annual reports, details of investor complaints received by them from all sources," Sebi stated. The details of complaints will be signed off by the trustees of the mutual fund house. This is one of major steps to bring more transparency in the mutual fund industry, feel the experts.
For reporting of such complaints, Sebi has classified it into three types - delay/non payment of money, statement of accounts and service related (which will include wrong and unauthorised switching between schemes and loads charged).
Mirae Asset Mutual Fund CEO Arindham Ghosh said, "This is a welcome move by the market regulator which will increase transparency. I don't think it is a problem for the mutual fund industry as they are already disclosing investor's complaints regularly to the regulator". He adds that from now on though it will be on the public domain, all the fund houses have to upload their report for the year 2009-10 by June 2010 on their website as well as on the website of Association of Mutual Funds in India (Amfi). For the subsequent financial years, such reporting will be made within 2 months of the financial closure. In the last one year, Sebi has brought in handful of new regulations in the mutual fund industry, like ban on entry load, abolition of NOC for changing brokers and Application Supported by Blocked Amount (ASBA) facility.
Sebi arm to conduct distributor exams
From June 1, 2010, onwards, Sebi will effectively takeover the examination process for the mutual fund distributors. National Institute of Securities Markets (NISM), established by Sebi, would be conducting examination for the mutual fund distributor's certification. From the above date, test for AMFI Mutual Fund (Basic) Module and AMFI Mutual Fund (Advisors) Module will be discontinued.
"It has been decided that mutual funds shall henceforth disclose on their websites, on the Amfi website as well as in their annual reports, details of investor complaints received by them from all sources," Sebi stated. The details of complaints will be signed off by the trustees of the mutual fund house. This is one of major steps to bring more transparency in the mutual fund industry, feel the experts.
For reporting of such complaints, Sebi has classified it into three types - delay/non payment of money, statement of accounts and service related (which will include wrong and unauthorised switching between schemes and loads charged).
Mirae Asset Mutual Fund CEO Arindham Ghosh said, "This is a welcome move by the market regulator which will increase transparency. I don't think it is a problem for the mutual fund industry as they are already disclosing investor's complaints regularly to the regulator". He adds that from now on though it will be on the public domain, all the fund houses have to upload their report for the year 2009-10 by June 2010 on their website as well as on the website of Association of Mutual Funds in India (Amfi). For the subsequent financial years, such reporting will be made within 2 months of the financial closure. In the last one year, Sebi has brought in handful of new regulations in the mutual fund industry, like ban on entry load, abolition of NOC for changing brokers and Application Supported by Blocked Amount (ASBA) facility.
Sebi arm to conduct distributor exams
From June 1, 2010, onwards, Sebi will effectively takeover the examination process for the mutual fund distributors. National Institute of Securities Markets (NISM), established by Sebi, would be conducting examination for the mutual fund distributor's certification. From the above date, test for AMFI Mutual Fund (Basic) Module and AMFI Mutual Fund (Advisors) Module will be discontinued.
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