SEBI unveils new format for MFs’ SID

Mumbai, November 1, 2023 

MFs are asked to disclose scheme’s portfolio holdings including top 10 holdings by issuer and fund allocation towards various sectors through a functional web link

Capital market regulator SEBI has simplified the scheme information document (SID) of mutual funds by implementing changes in the existing format.

SEBI has directed mutual funds to disclose scheme’s portfolio holdings including top 10 holdings by issuer and fund allocation towards various sectors through a functional web link and the aggregate investment in the scheme made by the concerned scheme’s fund managers as part of the ‘skin-in-the-game’ regulations.

Mutual funds should also disclose the aggregate investment in the scheme under AMC’s Board of Directors and other key personnel, it said on Wednesday.

The regulator has made it mandatory for all new schemes to have an enabling provision for the creation of segregated portfolio and clearly mentioned in the SID.

New Norms
AMCs have to disclose risk-o-meter of the benchmark on the front page of initial offering application form, scheme information documents and key information memorandum besides the common application form along with the information about the scheme, it said.

The SID’s new simplified format will come into force from April 1, 2024.

The new norms are based on the suggestions made by the Association of Mutual Funds in India and the recommendations made by the Mutual Fund Advisory Committee.

The revised format is aimed at streamlining the dissemination of relevant information to investors, rationalising the preparation of SID and facilitating its periodic updation by mutual funds, the market regulator noted.

[The Hindu Business Line]