MFs must adhere to norms, says Sebi official

Our Markets Bureau

Mumbai, Oct 31: The Mutual Fund (MF) industry must adhere to transparency and disclosure norms as prescribed by the Securities and Exchange Board of India (Sebi) so that investors can take well informed decisions.

While addressing ‘Mutual Fund a Sebi perspective’ at the study circle meet organised by Canbank Mutual Fund, Sebi chief general manager PK Nagpal said: “The disclosure norms stipulated by Sebi compare well with those prevailing in developed countries like US, USA and Australia.” Mr Nagpal also added that Sebi does not approve of the offer documents, but insists on due diligence certificate from MFs. In order to keep investors abreast of all material changes, Sebi has issued norms for updating offer documents every two years.