Disclosure of investor complaints with respect to Mutual Funds - SEBI - Cir/IMD/DF/2/2010

CIRCULAR Cir/IMD/DF/2/2010 May 13, 2010 All Mutual Funds, Asset Management Companies (AMCs) and Association of Mutual Funds of India Sir/Madam, Sub: Disclosure of investor complaints with respect to Mutual Funds 1. SEBI has received feedback from investors and Investors Associations to improve transparency in the grievance redressal mechanism . Based on the same, transparency in grievance redressal is identified as a key area to augment investor protection. It is envisaged that transparency will also improve the general functioning of the market by providing investors the wherewithal to make an informed choice. 2. Accordingly, it has been decided that 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 said details should be vetted and signed off by the Trustees of the concerned Mutual Fund. 3. The format for the aforesaid disclosure is given as Annexure to this Circular. 4. The Mutual Funds are accordingly advised to : a. Upload the report for the year 2009-10 by June 30, 2010. b. Upload the report for the following financial years within 2 months of the close of the financial year. c. Include the report in their annual reports, as part of the Report of the Trustees, beginning with the annual report for the year 2009-10. 5. This Circular is being issued in exercise of powers conferred under Section 11 (1) of the Securities and Exchange Board of India Act, 1992, read with the provisions of Regulation 77 of the SEBI (Mutual Funds) Regulations, 1996, to protect the interests of investors in securities and to promote the development of, and to regulate the securities market. Yours faithfully, S. Ravindran Chief General Manager Tel no. 022-26449340 [email protected] Encl: as above ANNEXURE Redressal of Complaints received against Mutual Funds (MFs) during 20xx-xx: (In excel sheet) Name of Mutual Fund and total number of folios Complaint code Type of complaint# (a) No. of complaints pending at the beginning of the year Action on (a) and (b) (b) No of complaints received during the year Resolved Non Actionable* Pending Within 30 days 30- 60 days 60-180 days Beyond 180 days 0-3 months 3-6 months 6-9 months 9-12 months I A Non receipt of Dividend on Units I B Interest on delayed payment of Dividend I C Non receipt of Redemption Proceeds I D Interest on delayed payment of Redemption II A Non receipt of Statement of Account/Unit Certificate II B Discrepancy in Statement of Account II C Non receipt of Annual Report/Abridged Summary III A Wrong switch between Schemes III B Unauthorized switch between Schemes III C Deviation from Scheme attributes III D Wrong or excess charges/load III E Non updation of changes viz. address, PAN, bank details, nomination, etc IV Others TOTAL # including against its authorized persons/ distributors/ employees. etc. *Non actionable means the complaint that are incomplete / outside the scope of the mutual fund Classification of complaints Type of Complaint TYPE I Delay/Non-receipt of money I A Dividend on Units I B Interest on delayed payment of Dividend I C Redemption Proceeds I D Interest on delayed payment of Redemption TYPE II Statement of Account/Unit Certificate/Annual Report II A Non receipt of Statement of Account/Unit Certificate II B Discrepancy in Statement of Account II C Non receipt of Annual Report/Abridged Summary TYPE III Service related III A Wrong switch between Schemes III B Unauthorized switch between Schemes III C Deviation from Scheme attributes III D Wrong or excess charges/load III E Non updation of changes viz. address, PAN, bank details, nomination, etc TYPE IV Others