On April 12,2021 Based on the consultation from the industry, Securities and Exchange Board of India (SEBI) has revised the reporting formats for mutual funds with new guidelines.
- The guidelines are for the reports which will be submitted by asset management companies (AMCs) to trustees, by AMCs to SEBI and by trustees to the SEBI.
- SEBI has discontinued the bi-monthly and half-yearly basis submission of the compliance certificate by an AMC to the trustees and added both the reports in their quarterly report.
Format for Quarterly Report (Qr) From AMCs to Trustees:
- SEBI has informed the AMCs to submit the QR on the activities of Mutual Funds/AMCs to trustees within 21 days from the end of respective quarters (March, June, September and December)
Details to be included in the QR:
- Number of live schemes (as on the last day of the quarter)
- Details of Schemes – which were not constituted, merged, close-ended Schemes Rolled-over and schemes that underwent fundamental attribute change.
- Clearance received to launch New Schemes
- Details of Assets Under Management (AUM) and details of AMC related information, details related to investment, product, risk management, valuation of investments, investor.
Details On Half-Yearly Trustee Report by Trustees to SEBI:
- The AMC should need to mention ‘Yes’/’No’ with respect to each compliance item and if mentioned as ‘No’, then the nature of non-compliance along with the corrective action taken should be given.
- The guidelines would come into effect from June 2021 (For quarterly report) and – from the half-year ended March 2021(for half-yearly trustee report).
SEBI Imposed Rs 25 crore penalty to YES Bank for AT-1 Bonds Misselling:
Due to misselling of the lender’s Additional Tier 1 (AT-1) bonds during the period from December 1, 2016 to February 29, 2020 Securities and Exchange Board of India (SEBI) imposed Rs 25 crore penalty for Yes Bank.
- SEBI also imposed Rs 1 crore fine to Vivek Kanwar (the head of the private wealth management team) and Rs 50 lakh to each of Ashish Nasa and Jasjit Singh Banga (part of the private wealth management team at the time of violation) and gave 45 days as timeline to pay the penalty.
Note – Additional Tier-1(AT-1) bonds, are unsecured and perpetual in nature issued by banks to shore up their core capital to meet the Basel-III norms.
Recent Related News:
The Securities and Exchange Board of India (SEBI) during its board meeting eased the listing norms for large companies by enabling them to divest minimum 5% in the IPO (Initial public offering), instead of 10%. Also, for raising the public float to 25%, the term has increased to 5 years instead of 3 years.
About Securities and Exchange Board of India (SEBI):
Establishment – On April 12, 1992, in accordance with the Securities and Exchange Board of India Act, 1992.
Headquarters – Mumbai, Maharashtra
Chairman – Ajay Tyagi