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Filing of Offer Documents/Disclosure of NAV And Guaranteed Return Scheme

May 05, 1997
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Circulars

D.CHANDA

 

DIVISION CHIEF

IIMARP/MF/CIR/07/844/97

May 5, 1997

 All Mutual Funds registered with SEBI/

Asset Management Companies/

Unit Trust of India

 

Dear Sirs,

 

Sub : Filing of Offer Documents/Disclosure of NAV

 

And Guaranteed Return Scheme

 

This has reference to the discussions we had with all the members of the Association of Mutual Funds of India (AMFI) on April 30, 1997. Pursuant to the discussions and the points agreed upon, all Mutual Funds / AMCs are requested to note the following:-

  1. Regarding filing of the offer document

     

  1. If any material change is made in the offer document after it is filed with SEBI within 21 days period, then a fresh period of 21 days shall again commence from the date when the revised offer document is submitted or a change is made in the offer document already filed, through a submission of additional information by way of a letter; 
  2. If the printed offer document is at variance with the offer document which has been filed with SEBI and the variation is in the nature of material alteration or the suggestions made by SEBI under sub-regulation (2) of regulation 29 of the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996, SEBI shall order immediate withdrawal of the offer document from circulation and shall publicise such withdrawal of the offer document.
  3. The printed offer document must reach SEBI before it is issued for circulation. Failure to do so shall invite penalties under the Regulations. 

Mutual Funds may please note that the aforesaid directions shall be effective immediately.

  1. Regarding disclosure of NAV

    2. It was agreed that effective from June 1, 1997, NAVs of all open ended equity oriented schemes shall be published on a daily basis by all mutual funds and UTI.

     

  2. Regarding Guaranteed Return Schemes

As agreed all Mutual Funds which offer Guaranteed Return Schemes shall clearly indicate in the offer document as to who is offering guarantee and that the guarantee is for both, initial capital invested and the return assured. This comes into effect immediately.

Yours faithfully, 

 

D.CHANDA