All Mutual Funds, Asset Management Companies (AMCs) and Association of Mutual Funds in India (AMFI)

Deputy General Manager Investment Management Department SEBI/IMD/MC No.2/836/2011 January 07, 2011 All Mutual Funds, Asset Management Companies (AMCs) and Association of Mutual Funds in India (AMFI) Dear Sir/ Madam, Sub: Master Circular for Mutual Funds For effective regulation of the Mutual Fund Industry, Securities & Exchange Board of India (SEBI) has been issuing various circulars from time to time. In order to enable the industry and other users to have an access to all the applicable circulars at one place, Master Circular for Mutual Funds has been prepared. This Master Circular is a compilation of all the circulars issued by SEBI on the above subject, which are operational as on date of this circular. Yours faithfully, Rakesh Bhanot MASTER CIRCULAR FOR MUTUAL FUNDS BY SECURITIES & EXCHANGE BOARD OF INDIA 1. This Master Circular includes circulars issued upto December 31, 2010. 2. In case of any inconsistency between the master circular and the applicable circulars, the contents of the relevant circular shall prevail. 3. Master Circular is a compilation of all the existing/applicable circulars issued by Investment Management Department of SEBI issued to Mutual Funds. Efforts have been made to incorporate certain applicable provisions of existing circulars (as on December 31, 2010) issued by other Department/Division of SEBI relevant to Mutual Funds. 2 Master Circular for Mutual Funds INDEX ABBREVIATIONS............................................................................. 5 CHAPTER 1..................................................................................... 6 OFFER DOCUMENT FOR SCHEMES................................................. 6 CHAPTER 2................................................................................... 16 CONVERSION AND CONSOLIDATION OF SCHEMES AND LAUNCH OF ADDITIONAL PLAN........................................................................ 16 CHAPTER 3................................................................................... 22 NEW PRODUCTS ........................................................................... 22 CHAPTER 4………………………………………………………………………….26 RISK MANAGEMENT SYSTEM........................................................ 26 CHAPTER 5................................................................................... 29 DISCLOSURES & REPORTING NORMS ........................................... 29 CHAPTER 6................................................................................... 38 GOVERNANCE NORMS .................................................................. 38 CHAPTER 7................................................................................... 59 SECONDARY MARKET ISSUES ...................................................... 59 CHAPTER 8................................................................................... 63 NET ASSET VALUE........................................................................ 63 CHAPTER 9................................................................................... 74 VALUATION .................................................................................. 74 CHAPTER 10................................................................................. 94 LOADS, FEES AND EXPENSES....................................................... 94 CHAPTER 11................................................................................. 99 DIVIDEND DISTRIBUTION PROCEDURE ....................................... 99 CHAPTER 12................................................................................102 INVESTMENT BY SCHEMES..........................................................102 CHAPTER 13................................................................................119 ADVERTISEMENTS ......................................................................119 CHAPTER 14................................................................................135 3 Master Circular for Mutual Funds INVESTOR RIGHTS & OBLIGATIONS............................................135 CHAPTER 15................................................................................142 CERTIFICATION AND REGISTRATION OF INTERMEDIARIES .......142 CHAPTER 16................................................................................146 TRANSACTION IN MUTUAL FUNDS UNITS.....................................146 FORMATS ------------------------------------------Refer the attachment ANNEXURES --------------------------------------Refer the attachment 4 Master Circular for Mutual Funds ABBREVIATIONS American Depository Receipt Association of Mutual Funds in India Asset Management Company Bombay Stock Exchange Compliance Test Reports Contingent Deferred Sales Charge Fixed Maturity Plans Foreign Institutional Investor Global Depository Receipt Gold Exchange Traded Fund Hindu Undivided Family Investor Service Center Key Information Memorandum Monthly Cumulative Report National Stock Exchange Net Asset Value New Fund Offer Non Performing Assets Permanent Account Number Regulation SEBI (Mutual Funds) Regulations 1996 Securities and Exchange Board of India ADR AMFI AMC(s) BSE CTR(s) CDSC FMP(s) FII GDR GETF HUF ISC KIM MCR NSE NAV NFO NPA(s) PAN Reg. Regulations the Board Scheme Information Document Statement of Additional Information Systematic Investment Plan Systematic Transfer Plan Systematic Withdrawal Plan SID Offer SAI Document SIP STP SWP Trustee(s) Uniform Client Code 5 Board of Trustee(s)/Trustee Company UCC Master Circular for Mutual Funds ... - tailieumienphi.vn