The first-ever long term policy for over Rs 9 lakh crore mutual fund industry, aimed to make it an attractive investment proposition for retail investors, also provides for bolstering distribution channels.
The capital market watchdog has suggested selling of mutual funds through public sector banks and online to increase their penetration.
In a circular issued today, Sebi said mutual funds would be required to disclose certain additional details about their Assets Under Management (AUM) on a "monthly basis".
Besides, the data has to put on a consolidated basis on website of Association of Mutual Funds of India (AMFI) within seven working days of the month.
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This circular would be effective from April 1, 2014.
The Securities and Exchange Board of India (Sebi) said mutual funds should disclose the rationale while exercising their voting rights in investee companies.
AMCs would be required to make disclosure of votes cast on their website on a quarterly basis, within 10 working days from the end of the quarter. Further, they would need to continue disclosing voting details in their annual report.
On an annual basis, AMCs would be required to obtain auditor's certification on the voting reports being disclosed by them. Such auditor's certification would be submitted to trustees and also disclosed in the relevant portion of the MFs' annual report and website.
The confirmation to the same, along with any adverse comments made by auditors, would have to be reported to Sebi in the half yearly trustee reports.
With an aim to increase penetration of mutual fund products and to energise the distribution network, Sebi has allowed additional expense ratio of 30 basis points for garnering funds from B-15 cities.