CODE OF CONDUCT

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..... According to clause 7 of the code of conduct as specified in the Fifth Schedule to SEBI (Mutual Funds) Regulations, 1996, the mutual funds should not use any unethical means to sell, market or induce any investor to buy their schemes. Further, clause 8 and 9 provide inter alia that they shall maintain high standards of integrity and fairness in all their dealings, render at all times high st .....

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..... cular dated September 25, 2001, the mutual funds shall monitor the activities of their agents/distributors to ensure that they do not indulge in any kind of malpractice or unethical practice while selling/marketing mutual funds units. If any intermediary does not comply with the code of conduct, the mutual fund shall report it to AMFI and SEBI. No mutual fund shall deal with those intermediaries w .....

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..... selling, distribution and advertising practices. Be fully conversant with the key provisions of the offer document as well as the operational requirements of various schemes. 3. Provide full and latest information of schemes to investors in the form of offer documents, performance reports, fact sheets, portfolio disclosures and brochures, and recommend schemes appropriate for the client .....

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..... offer document and SEBI Mutual Fund Regulations. 8. Avoid colluding with clients in faulty business practices such as bouncing cheques, wrong claiming of dividend/redemption cheques, etc. 9. Avoid commission driven malpractices such as: (a) recommending inappropriate products solely because the intermediary is getting higher commissions therefrom. (b) encouragin .....

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..... the basis for recommending a scheme to the client. 14. Intermediaries will not rebate commission back to investors and avoid attracting clients through temptation of rebate/gifts etc. 15. A focus on financial planning and advisory services ensures correct selling, and also reduces the trend towards investors asking for passback of commission. 16. All employees engaged in .....

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