SEBI tightens norms for MFs

Mutual fund investors will soon be able to know the quantum of commission paid by the fund houses to the distributors as well as salaries drawn by the top brass of the asset management companies (AMCs).

The Securities and Exchange Board of India (SEBI), tightening the disclosure norms for mutual fund houses, directed the entities to make the disclosures a part of the consolidated account statement (CAS) sent to all mutual fund investors.

According to SEBI, the half-yearly CAS issued in September and March should include the “amount of the actual commission” paid by fund houses.

“The term ‘commission’ here refers to all direct monetary payments and other payments made in the form of gifts / rewards, trips, event sponsorships etc. by AMCs/MFs to distributors,” according to a SEBI circular issued on Friday.

Mutual fund houses have also been directed to disclose the salaries of the chief executive officer (CEO), chief investment officer (CIO) and chief operating officer (COO) along with any other employee whose annual remuneration is over Rs.60 lakh