Securities and Exchange Board of India (SEBI) vide notification / Circular No. SEBI/HO/IMD/DF3/CIR/P/2021/014 issued and publishes dated 29th January, 2021, has published “Circular on Revision of Monthly Cumulative Report” in exercise of the powers conferred under Section 11 (1) of the Securities and Exchange Board of India Act, 1992, read with Regulation 77 of the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996.
♦ The Circular was addressed to:
All Mutual Funds(MFs)/
Asset Management Companies (AMCs)/
Trustee Companies/ Board of Trustees of Mutual Funds/
Association of Mutual Funds in India (AMFI)
♦ Need of the Circular:
To protect the interests of investors in securities and to promote the development of, and to regulate the securities market and to bring transparency in reporting of segregated portfolios.
♦ Timeline / Applicability:
From January 2021 onwards, AMCs will have to submit the monthly cumulative reporting (MCR) to Sebi in the new format.
♦ Provisions under Circular:
Sebi, Capital markets regulator tweaked the monthly revised cumulative reporting format, whereby asset management companies (AMCs) will have to disclose about creation of segregated portfolios.
♦ Key Highlights:
Under the modified monthly cumulative report or MCR, AMCs will have to disclose about the number of segregated portfolios created as well as net assets under management in such segregated portfolios.
Mutual funds need to disclose about the number of schemes in each segment, including open ended schemes, close ended schemes and equity oriented schemes.
Submission of information pertaining to the number of folios, funds mobilized, repurchase or redemption, net inflow or outflow, net as well as average net asset under management.
Kindly note that: revised formats attached with the circular (link shared below)
The entire contents of this article are solely for information purpose and have been prepared on the basis of relevant provisions and as per the information existing at the time of the preparation by the Author. Compliance Calendar LLP and the Author of this Article do not constitute any sort of professional advice or a formal recommendation. The author has undertaken utmost care to disseminate the true and correct view and doesn’t accept liability for any errors or omissions. You are kindly requested to verify and confirm the updates from the genuine sources before acting on any of the information’s provided hereinabove. Compliance Calendar LLP shall not be responsible for any loss or damage in any circumstances whatsoever.