Simplification of Offer Document and Key Information Memorandum of Mutual Funds Scheme

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.... March 31, 1998. The format for memorandum containing key information (Key Information Memorandum/KIM) of Mutual Fund schemes is prescribed in the circular dated July 28, 2004. 2.  AMFI had set up a committee to examine the ways of simplification of OD and KIM to make it more reader friendly. The committee recommended that the existing OD may be split into two parts i.e. Statement of Additional Information (SAI) and Scheme Information Document (SID). SAI shall incorporate all statutory information on Mutual Fund.  3.  The formats of Standard OD and KIM specified through circulars dated March 31, 1998 and July 28, 2004 respectively stand revised. Henceforth, Mutual Funds shall prepare SID, SAI and KIM in the simplified f....

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.... SAI on its website. The existing schemes shall adopt the SID and KIM format as soon as possible but not later than 12 months from the date of issuance of this circular. A confirmation in this regard shall be given in the half yearly trustee report.  5.  Updation of SID and KIM - Henceforth, clause 1 of circular dated February 9, 2001 pertaining to 'Updating the offer document on a continuous basis' shall not be applicable. The procedure for updation of SID and KIM shall be as follows: i.  For the schemes launched in the first half of a financial year, the SID shall be updated within 3 months from the end of the financial year. However, for the schemes launched in the second half of a financial year, SID shall ....

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....ble load structure. iii.  A copy of all changes made to the scheme shall be filed with SEBI within 7 days of the change. iv.  KIM shall be updated at least once a year and shall be filed with SEBI forthwith. 6.  Updation of SAI - The procedure for updation of SAI shall be as follows: i.    Mutual Funds shall be required to prepare SAI and upload the same on their website and on AMFI website. The printed copy of the same shall be made available to the investor on request. SAI shall be updated within 3 months from end of financial year and filed with SEBI. ii.  Any material changes in the SAI shall be made on an ongoing basis by way of updation on the Mutual Fund and AM....

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....l be launched within six months from the date of the issuance of observations (final) from SEBI. If the AMC intends to launch the scheme at a date later than six months, a fresh SID under Regulation 28 (1) alongwith filing fees shall be filed with SEBI. Further, it is clarified that the mutual funds must file their replies to the modifications suggested by SEBI on draft SID as required under Regulation 29 (2), if any, within six months from the date of the letter. In case of lapse of six-month period, the mutual funds shall be required to file fresh SID alongwith filing fees. 8.  Standard Observations - In order to ensure minimum level of disclosures in the SID and SAI, the revised and updated format of Standard Observations as on d....