SEBI Requires Mutual Funds to Disclose Risk-O-Meter in All Materials for Enhanced Investor Protection Effective October 2021.
The Securities and Exchange Board of India (SEBI) mandates mutual funds and asset management companies to disclose the risk-o-meter of schemes and benchmarks to investors. This includes performance comparisons and detailed portfolio information in regular statements. The risk-o-meter must be included in all disclosures and promotional materials. For international benchmarks, risk-o-meter scores should align with those for foreign securities. Asset management companies must provide investors with direct access to their subscribed scheme portfolios via email links. These requirements take effect on October 1, 2021, and aim to enhance investor protection and market regulation.
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