Stocks

SEBI tightens risk disclosure norms for MFs

Our Bureau Mumbai | Updated on August 31, 2021

Market regulator SEBI has made it mandatory for mutual funds (MFs) to reveal the risk-o-metre and scheme performance against its benchmarking all disclosures, including promotional material wherever the scheme performance is highlighted.

“The disclosure needs to be included in the ‘scheme information document’ for new fund offers,” it said. For international benchmarks, SEBI said risk-o-meter score can be in line with the score assigned to foreign securities as specified in the product labelling norms.

“MFs have to enter into arrangements with their selected Index to source risk-o-meter for their benchmarks within five days subsequent to the end of the month,” it said. The norms will come into effect from October 1.

Published on August 31, 2021

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