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SIMPLIFICATION AND STREAMLINING OF OFFER DOCUMENTS OF MUTUAL FUND SCHEMES



The Securities and Exchange Board of India (SEBI) in collaboration with the Association of Mutual Funds in India (AMFI) conducted a comprehensive revamp of the Scheme Information Document (SID) format to enhance its preparation by mutual funds and improve its accessibility for investors. The focus was on simplifying and streamlining the SID format to make essential information accessible while facilitating periodic updates by mutual funds. This initiative aimed to increase the document's readability and ensure investors receive relevant and critical information.


The revised format, mentioned in Annexure 'A' of the attached circular was designed to streamline the disclosure of pertinent details to investors, making the SID creation process more efficient and enabling easier updates by mutual funds. The modifications were set to replace the format specified in the circular dated May 23, 2008, and incorporated into the Master Circular dated May 19, 2023.



Regarding the applicability of the revised format for SID, Key Information Memorandum (KIM), and Statement of Additional Information (SAI), the timeline was delineated as follows:

  • The updated format for SID/KIM/SAI will be implemented from April 1, 2024.

  • Mutual funds were required to file draft SIDs with SEBI by March 31, 2024, and those SIDs yet to receive final observations could use the old format provided they were updated as per the specified timeline.

  • For existing SIDs, updates were mandated by April 30, 2024, with data as of March 31, 2024.

All updated SIDs were to be made available on SEBI/AMFI/AMCs websites within the stipulated timelines.



Moreover, the modifications in the Master Circular dated May 19, 2023, were detailed, including changes in SID format, disclosure requirements for portfolio holdings, scheme investments by Key personnel, provisions for creating segregated portfolios, disclosures related to provisions, and risk details in the SID.


In alignment with the revised SID format, AMFI was tasked with making necessary alterations to the KIM and SAI formats in consultation with SEBI within two months of the circular's issuance.



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