Sebi seeks more disclosures from mutual fund houses

To check how much progress the mutual fund industry is making towards increasing the reach of mutual funds beyond the top 15 cities, the Securities and Exchange Board of India (Sebi) has asked fund houses to give area-wise break-up of the asset under management on a monthly basis. At present, they to do so on a quarterly basis.

Sebi has also asked fund houses to make some other disclosures such as state-wise and categorywise disclosure of money raised. Fund houses will also have to provide the data for the money that is coming from different investor categories-retail, and corporate-in different schemes such as equity, debt, ETFs, etc.

This should be published separately by each fund house on its website and sent to the Association of Mutual Funds in India so that it can publish a consolidated report on a monthly basis within seven working days from the starting of the month.

Recently, Sebi allowed mutual funds to charge extra 30 basis points on 30% of new money or 15% of total assets, whichever is higher, coming from areas other than the top 15 cities.