Capital markets regulator Sebi on Thursday issued the Disclosure Framework for Asset Management Companies, which mandates scheduled disclosure of investments in securities of companies that are exempt from the definition of “affiliated companies”.
This comes after Sebi changed mutual fund rules earlier this month to remove the applicability of the definition of “partner” to sponsors who invest in various companies on behalf of beneficiaries of insurance policies or such other schemes.
Under the Rules, an employee includes any person who, directly or indirectly, alone or in combination with relatives, exercises control over, among other things, AMC or the Trustee.
As part of the new framework, asset management companies (AMCs) are required to make scheduled disclosures of investments in securities of those companies that are exempt from the definition of “affiliated companies” as on the last day of each quarter, the Securities and Exchange Board of India (Sebi) said in a statement circular.
In addition, the disclosure of the investment includes the ISIN-related value of the investment and the value as a percentage of the plan’s assets under management (AUM).
Such disclosure will be made on the websites of the relevant AMCs and on the Association of Mutual Funds in India (AMFI) website within one month of the end of each quarter.
There are currently 43 mutual fund houses managing assets totaling almost Rs 38 lakh crore.
