CODE OF CONDUCT

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....uct as specified in the Fifth Schedule to SEBI (Mutual Funds) Regulations, 1996, the mutual funds should not use any unethical means to sell, market or induce any investor to buy their schemes. Further, clause 8 and 9 provide inter alia that they shall maintain high standards of integrity and fairness in all their dealings, render at all times high standards of service and exercise due diligence. ....

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....tor the activities of their agents/distributors to ensure that they do not indulge in any kind of malpractice or unethical practice while selling/marketing mutual funds units. If any intermediary does not comply with the code of conduct, the mutual fund shall report it to AMFI and SEBI. No mutual fund shall deal with those intermediaries who do not follow code of conduct. The contents of this circ....

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....cument as well as the operational requirements of various schemes. 3. Provide full and latest information of schemes to investors in the form of offer documents, performance reports, fact sheets, portfolio disclosures and brochures, and recommend schemes appropriate for the client's situation and needs. 4. Highlight risk factors of each scheme, avoid misrepresentation and exaggeration, and u....

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....wrong claiming of dividend/redemption cheques, etc. 9. Avoid commission driven malpractices such as: (a) recommending inappropriate products solely because the intermediary is getting higher commissions therefrom. (b) encouraging over transacting and churning of mutual fund investments to earn higher commissions, even if they mean higher transaction costs and tax for investors....