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TMI BlogCircular for Mutual FundsX X X X Extracts X X X X X X X X Extracts X X X X ..... s of sponsor/Asset Management Company in the unaudited half yearly financial results, the abridged scheme wise annual report and the SAI, these disclosures shall henceforth be made in the format as prescribed in Annexure A. 2. Additional mode of payment through Applications Supported by Blocked Amount (hereinafter referred to as "ASBA") in Mutual Funds and Reduction in New Fund offer (NFO) period i. In its continuous endeavor to make the public issue process efficient, SEBI had introduced ASBA facility which investors have been enjoying for subscription to public issue of equity capital of companies. It has been decided to extend ASBA facility to the investors subscribing to New Fund Offers (NFOs) of mutual fund schemes. It shall co-exis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hemes). Mutual Funds/ AMCs shall use the NFO proceeds only on or after the closure of the NFO period. The mutual fund should allot units/ refund of money and dispatch statements of accounts within five business days from the closure of the NFO and all the schemes (except ELSS) shall be available for ongoing repurchase/sale/ trading within five business days of allotment" iii. Applicability: The Mutual Funds/AMCs have to compulsorily provide ASBA facility to the investors for all NFOs launched on or after July 01, 2010. The provisions mentioned at paragraph 2(ii) regarding reduction in NFO period shall also be applicable for all NFOs launched on or after July 01, 2010. 3. Non availability of Unit Premium Reserve for dividend distribution ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Governance of Public Listed Companies i. The issue of the role of Mutual Funds in Corporate Governance of listed companies was considered by the Mutual Fund Advisory Committee. It was felt that mutual funds should play an active role in ensuring better corporate governance of listed companies. ii. It has been decided that henceforth, AMCs shall disclose their general policies and procedures for exercising the voting rights in respect of shares held by them on the website of the respective AMC as well as in the annual report distributed to the unit holders from the financial year 2010-11. iii. Further, the AMCs are also required to disclose on the website of the respective AMC as well as in the annual report distributed to the unit ho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... including those for which observation letter have been issued under Regulation 29 of SEBI (Mutual Funds) Regulations, 1996 would be required to carry out the changes in Scheme Information Document and file the same with SEBI before the launch. iii. The provisions of SEBI (Mutual Fund) Regulations, 1996 in this regard would be suitably amended in due course 6. Fund of Funds Scheme i. It has been observed from the disclosures in the scheme information documents (SID) that Asset Management Companies (AMCs) have been entering into revenue sharing arrangements with offshore funds in respect of investments made on behalf of Fund of Fund schemes. These arrangements create conflict of interest. ii. It has been decided that henceforth AMCs sh ..... X X X X Extracts X X X X X X X X Extracts X X X X
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