CODE OF CONDUCT

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....s) 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. With a view to implement the code of conduct effectively, ....

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....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 circular may please be brought to the notice of the intermediaries ....

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....e 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 urge investors to go through offer documents/key information memorandum before dec....

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....ces 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. 10. Avoid making negative statements about any AMC or scheme and ensure that comparisons if any, are m....