SEBI has released a circular on consolidated account statement which is issued to investors in accordance with the regulation 36(4) of SEBI Mutual Funds, 1996. The circular has been issued to increase the transparency of information to investors which will be effective from 1st October, 2016.
Various changes have been implemented in the Consolidated Account Statement. The changes brought through this circular are as follows:
1. Each CAS issued to the investors shall also provide the total purchase value / cost of investment
in each scheme.
2. The CAS issued for the half-yearly shall also provide:
The amount of actual commission paid by AMCs/Mutual Funds (MFs) to distributors (in absolute terms) during the half-year period against the concerned investor’s total investments in each MF scheme. 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. Further, a mention may be made in such CAS indicating that the commission disclosed is gross commission and does not exclude costs incurred by distributors such as service tax (wherever applicable, as per existing rates), operating expenses, etc.
The scheme’s average Total Expense Ratio (in percentage terms) for the half year period for each scheme’s applicable plan (regular or direct or both) where the concerned investor has actually invested in.
3. Such half-yearly CAS shall be issued to all MF investors, excluding those investors who do not
have any holdings in MF schemes and where no commission against their investment has been
paid to distributors, during the concerned half-year period.
An indicative format providing guidance on the key components which shall be reflected in half-yearly CAS can be found here.
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