SEBI has issued a circular for disclosure of risk-o-meter of scheme, benchmark and portfolio details to the investors in order to protect the interests of investors in securities and to promote the development of, and to regulate the securities market. The provisions of this circular shall be applicable with effect from October 1, 2021.
Earlier, SEBI issued a circular to mandate mutual funds to disclose the following to the investors in which the unit holders are invested as on the date on which the disclosures are stipulated:
a. risk-o-meter of the scheme and the benchmark along with the performance disclosure of the scheme vis-à-vis benchmark; and
b. details of the portfolio while communicating the fortnightly, monthly and half-yearly statement of scheme portfolio via email.
With regard to para 2(b) of SEBI circular, Asset Management Companies (‘AMCs’) shall provide a feature wherein a link is provided to investors to their registered email to enable the investor to directly view/download only the portfolio of schemes subscribed by the said investor.
AMCs shall enter into arrangements with their selected Index providers to provide the risk-o-meter for their benchmarks to the AMCs latest by the fifth day subsequent to the end of the month.