SEBI, vide its circular dated 25th August, 2022 came out with disclosure requirement for Asset Management Companies (AMCs). SEBI said that AMCs shall ensure scheme wise disclosure of investments, as on the last day of each quarter, in securities of such entities that are excluded from the definition of associate.
Disclosure of Investment shall include ISIN wise value of investment and value as percentage of AUM of scheme. Such disclosure shall be made on the websites of respective AMCs and on the website of AMFI, within one month from the close of each quarter.
| Under the rules, “Associate” includes |
| a person who directly or indirectly, by himself, or in combination with relatives, exercises control over the asset management company or the trustee or the sponsor, as the case may be, or in respect of whom the asset management company or the trustee or the sponsor, directly or indirectly, by itself, or in combination with other persons exercises a control, or whose director except an independent director, officer or employee is a director, officer or employee of the asset management company: Provided that the above definition of associate shall not be applicable to such sponsors, which invest in various companies on behalf of the beneficiaries of insurance policies or such other schemes as may be specified by the Board from time to time. |
The provisions of this circular are applicable to all Mutual Funds, Asset Management Companies (AMCs) and Trustee Companies/Boards of Trustees of Mutual Funds/ Association of Mutual Funds in India (AMFI).
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