Source: PTI May 13 2010 , New Delhi
Market regulator SEBI today asked mutual fund houses to disclose the details of investor
complaints on websites, as well as in annual reports, to enable clients to make more informed decisions.
"Mutual Funds shall henceforth disclose on their websites, on the AMFI website as well as in their Annual reports, details of investor complaints received by them from all sources," the Securities and Exchanges Board of India said in a circular.
Following the circular, all Asset Management Companies (AMCs) will have to put up the data for the bygone fiscal by June 30, 2010, and for each new fiscal within two month of the close of the year.
SEBI expects the disclosure norms would improve transparency in functioning of the AMCs and would enable investors to take informed decisions.
In order to increase investor interest in MFs, the market regulator had last year abolished entry load and asked fund houses not to deduct marketing and distribution charges from the investment made by customers.
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