Sebi issues more disclosure norms for merged mutual fund schemes

The Securities and Exchange Board of India (Sebi) has tightened norms pertaining to disclosure of performance track record of merged mutual fund (MF) schemes.

The market regulator on Thursday issued a circular for standardising performance disclosures following a merger of schemes.

Currently, due to lack of formal guidelines some fund houses use a weighted average of the performance of the schemes involved, while others only show the performance of the surviving schemes, the regulator said.

A weighted average of the two schemes is to be used only if they have similar features. The track record of a scheme, whose features are retained in