TaxTMI 
TaxTMI 
Simplification and streamlining of Offer Documents of Mutual Fund Schemes
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....rcular dated May 23, 2008 and incorporated as Clause 1.1.2 of Master Circular dated May 19, 2023, stands modified. 4. Applicability: The revised format for SID, KIM and SAI shall be adopted as under: a. Updated format for SID/KIM/SAI to be implemented w.e.f. April 01, 2024. b. Draft SIDs to be filed with SEBI on or before March 31, 2024 or SIDs already filed with SEBI (final observations yet to be issued) or SIDs for which the final observations have already been received from SEBI (if launched on or before March 31, 2024), can use the old format of SID, provided that the SIDs are updated as per timeline mentioned at (c) below. c. For Existing SIDs - by April 30, 2024 with data as on March 31, 2024. All updated/revised SIDs shall be made available on the website of SEBI/AMFI/AMCs within the timelines specified above. 5. Further, in order to give effect to the revisions in the SID, the following clauses of SEBI Master circular dated May 19, 2023 stand modified, as detailed below: Sl. No. Clauses of Master Circular Modified clause 1. Format 5A - SID Format (referred to in clause 1.1.2) The format of SID specified under Formats ....
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....ME INFORMATION DOCUMENTSECTION I NAME OF THE SCHEME ( Type of Scheme ) 1. Name and type of the scheme to be aligned with SEBI Circulars on Categorization and Rationalization of Mutual Fund Schemes, 2. As per SEBI Circulars on Potential Risk Class (PRC) Matrix for debt schemes, type of scheme to include PRC description and table 3. For Index Funds / Index ETF - Name of scheme shall include complete name of underlying Index. 4. In case of FOF's where single fund is underlying (Feeder Funds): To include the complete name of the underlying fund in the name of the scheme 5. Product Labelling and Risk-o-meter of the Scheme and Benchmark should be disclosed 6. In case the scheme is listed/proposed to be listed (ETFs/close ended etc.), the Scrip Code issued by the stock exchange after listing to be mentioned below the Scheme Name. This product is suitable for investors who are seeking*: Scheme Riskometer Benchmark Riskometer (as applicable) As per AMFI Tier I Benchmark i.e. .................. (as applicable) • The above product labelling assigned during the New Fund Offer (NFO) is based on internal assessment of the....
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....lusion of such information does not, by virtue of its nature, or manner of presentation, obscure or impede understanding of any information that is required to be included under the Scheme Information Document. ii. Since investors who rely on the Scheme Information Document may not be sophisticated in legal or financial matters, care should therefore be taken to present the information in the Scheme Information Document in simple language and in a clear, concise and easily understandable manner. iii. The scheme shall not have a name or title which may be deceptive or misleading. Scheme's name should be consistent with its statement of investment policy and the scheme name should be in line with SEBI circulars on categorization. iv. The type of the scheme would mean whether the scheme is a growth scheme, income scheme, balanced scheme etc. and whether the scheme is open-ended, close-ended, an interval fund etc. and the scheme type should be in line with SEBI circular on categorization. v. Scheme Information Document has two sections- Section I and Section II. While Section I contains scheme specific information that is dynamic, Section II contains elaborated provisions (....
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....uring NFO: • On continuous basis: • AMC to mention about minimum balance requirements (if any) XIII. Minimum Additional Purchase Amount XIV. Minimum Redemption/switch out amount XV. New Fund Offer Period This is the period during which a new scheme sells its units to the investors. NFO opens on: NFO closes on: Minimum duration to be 3 working days and will not be kept open for more than 15 days Any changes in dates will be published through notice on AMC website i.e. .............. The NFO period in case of ELSS schemes shall continue to be governed by guidelines issued by Government of India. XVI. New Fund Offer Price: This is the price per unit that the investors have to pay to invest during the NFO. price per unit XVII. Segregated portfolio/side pocketing disclosure Confirmation/disclosure statement only. For Details, kindly refer SAI XVIII Swing pricing disclosure Confirmation/disclosure statement only. For Details, kindly refer SAI XIX. Stock lending/short selling Confirmation/disclosure statement only. For Details, kindly re....
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....d the guidelines there under shall be applicable. (viii) The Trustees have ensured that the (name of the scheme/Fund) approved by them is a new product offered by (name of the Mutual Fund) and is not a minor modification of any existing scheme/fund/product (This clause is not applicable to Fixed Maturity Plans and Close Ended Schemes except for those close ended schemes which have the option of conversion into open ended schemes on maturity and also to Interval Schemes.) Date: Place: Name: Designation: Part II. INFORMATION ABOUT THE SCHEME A. HOW WILL THE SCHEME ALLOCATE ITS ASSETS? This includes asset allocation table giving the broad classification of assets and indicative exposure level in percentage terms. The asset allocation should be consistent with the investment objective of the scheme and SEBI circulars on Categorization and Rationalization of Mutual Fund Schemes Instruments Indicative allocations (% of total assets) Maximum Minimum • Percentage of investment in overseas securities, derivatives for non-hedging purposes, stock lending, securitized debt, Debt inst....
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....shall match the asset allocation pattern of the scheme. (Example: Fund of Funds with multiple funds cannot be considered as a scheme with passive investment strategy since fund manager has scope for active selection and management of funds). Further, details on generic concepts such as macroeconomic trends may not be provided unless there are investment strategies derived specifically from these concepts. Disclosure for derivatives to be provided in summary form. For detailed derivative strategies, please refer to SAI. Further, Portfolio turnover policy, particularly for equity oriented schemes shall also be disclosed. In discussing the investment strategies, the scheme shall briefly discuss in the Scheme Information Document the probable effect of such strategies on the rate of the total portfolio turnover of the scheme, if such effects are significant and also other consequences which will result from the higher portfolio turnover rate e.g. higher brokerage and transaction cost. D. HOW WILL THE SCHEME BENCHMARK ITS PERFORMANCE? Benchmark (Total Returns Index): AMFI prescribed benchmark for all schemes except ETFs / Index Funds and FOFs with single underlying Fund. ....
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....alf Yearly. iv. Portfolio Turnover Rate particularly for equity oriented schemes shall also be disclosed. v. Aggregate investment in the Scheme by: Sr. No. Category of Persons Net Value 1 Concerned scheme's Fund Manager(s) Units NAV per unit For any other disclosure w.r.t investments by key personnel and AMC directors including regulatory provisions in this regard kindly refer SAI. vi. Investments of AMC in the Scheme - Details to be provided vide functional website link. The AMC shall not invest in any of the schemes unless full disclosure of its intention to invest has been made in the Scheme Information Document and that the AMC shall not be entitled to charge any fees on such investment Part III- OTHER DETAILS A. COMPUTATION OF NAV Disclosure pertaining to illustration on computation of NAV and Methodology for calculation of sale and re-purchase price of the units of mutual fund scheme. Disclosure to the effect that the repurchase price shall not be lower than 95% of the NAV. For other details such as policies w.r.t computation of NAV, rounding off, investment in foreign securities, procedure in case of delay in disclosure of N....
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....nal expenses under Regulations 52(6A)(c) Additional expenses for gross new inflows from specified cities *Impact of TER on returns of both Direct plan and Regular plan through an illustration may be provided. In case of Fund of Funds scheme, it shall be disclosed that the investors are bearing the recurring expenses of the scheme, in addition to the expenses of other schemes in which the Fund of Funds Scheme makes investments Any other information/disclosure to be added as per applicable Consolidated checklist of standard observations. D. LOAD STRUCTURE Exit Load is an amount which is paid by the investor to redeem the units from the scheme. Load amounts are variable and are subject to change from time to time. For the current applicable structure, please refer to the website of the AMC (www.-----) or may call at (toll free no.) or your distributor. Type of Load Load chargeable (as %age of NAV) Exit To be prescribed by respective AMC Section II I. Introduction A. Definitions/interpretation Functional website link that contains detailed description B. ....
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.... SEBI has reviewed and provided its comments on the proposal • A written communication about the proposed change is sent to each Unitholder and an advertisement is given in one English daily newspaper having nationwide circulation as well as in a newspaper published in the language of the region where the Head Office of the Mutual Fund is situated; and • The Unitholders are given an option for a period of atleast 30 calendar days to exit at the prevailing Net Asset Value without any exit load. D. Index methodology (for index funds, ETFs and FOFs having one underlying domestic ETF)- Disclosures regarding the index, index eligibility criteria, methodology, index service provider, index constituents, impact cost of the constituents E. Principles of incentive structure for market makers (for ETFs) F. Floors and ceiling within a range of 5% of the intended allocation against each sub class of asset, as per clause 13.6.2 of SEBI master circular for mutual funds dated May 19, 2023 (only for close ended debt schemes) G. Other Scheme Specific Disclosures: Listing and transfer of units Dematerialization of un....
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....ase refer the AMC website (Provide website link) at the following link for the list of official points of acceptance, collecting banker details etc. To inform investors that it is mandatory to mention their bank account numbers in their applications/requests for redemption. Minimum amount for purchase/redemption/switches (mention the provisions for ETFs, as may be applicable, for direct subscription/redemption with AMC. Minimum balance to be maintained and consequences of non-maintenance Accounts Statements The AMC shall send an allotment confirmation specifying the units allotted by way of email and/or SMS within 5 working days of receipt of valid application/transaction to the Unit holders registered e-mail address and/ or mobile number (whether units are held in demat mode or in account statement form). A Consolidated Account Statement (CAS) detailing all the transactions across all mutual funds (including transaction charges paid to the distributor) and holding at the end of the month shall be sent to the Unit holders in whose folio(s) transaction(s) have taken place during the month by ma....