Executive Summary:
This SEBI circular, dated April 12, 2021, revises reporting formats for Mutual Funds (MFs) to streamline regulatory compliance. It modifies the frequency and content of reports submitted by Asset Management Companies (AMCs) and Trustees to SEBI, and AMCs to Trustees. The changes come into effect starting with the quarter ending June 2021 for Quarterly and Compliance Test Reports, and the half year ended March 2021 for Half Yearly Trustee Reports.
Key Points / Main Content:
Reporting by AMCs to Trustees:
* Bimonthly Compliance Certificate (BCC) is discontinued.
* Half Yearly Compliance Certificate (HYCC) is discontinued.
* Quarterly Report (QR) submission by AMC to Trustees is required by the 21st of the succeeding month for quarters ending March, June, September, and December (format in Annexure I).
Reporting by AMCs to SEBI:
* Complete Compliance Test Report (CTR) submission by AMC to SEBI is required on a quarterly basis, by the 21st of the succeeding month for quarters ending March, June, September, and December (revised format in Annexure II).
Reporting by Trustees to SEBI:
* Half Yearly Trustee Report (HYTR) format is revised (Annexure III).
* Trustees must submit corrective steps for non-compliance reported in the HYTR.
* HYTR submission deadline remains within two months from the end of the half-year (September and March).
Applicability:
* QR and CTR changes are effective for reporting from the quarter ending June 2021.
* HYTR changes are effective for reporting from the half-year ended March 2021.
* BCC and HYCC are discontinued after the effective date of the QR report.
Impact Analysis:
Mutual Funds / AMCs:
* Impact: Changes in reporting frequency and format for submissions to Trustees and SEBI. Discontinuation of BCC and HYCC.
* Action Required: Adopt the revised formats for QR and CTR, and adjust reporting processes. Discontinue BCC and HYCC reporting.
Trustee Companies / Board of Trustees of Mutual Funds:
* Impact: Changes in the format of the HYTR to SEBI. Receipt of QR from AMCs.
* Action Required: Adopt the revised HYTR format and ensure timely submission to SEBI. Review QR received from AMCs.
SEBI:
* Impact: Revised reporting formats and frequencies for receiving information from AMCs and Trustees.
* Action Required: Update systems and processes to accommodate the new reporting formats.
Key Entities Referenced
Securities and Exchange Board of India (SEBI): The regulatory body issuing the circular related to reporting formats for Mutual Funds.
Mutual Funds (MFs): The investment vehicles subject to the reporting requirements outlined in the circular.
Asset Management Companies (AMCs): The entities managing the Mutual Funds and responsible for submitting reports to Trustees and SEBI.
Trustee Companies: Entities responsible for overseeing the AMCs and ensuring compliance with regulations.
Association of Mutual Funds in India (AMFI): An industry association for mutual funds in India.
SEBI Mutual Funds Regulations, 1996: The primary regulations governing Mutual Funds in India, which this circular amends.
Quarterly Report by AMC to Trustees (QR): A report that AMC needs to submit to trustees, as required in subregulation 4 of Regulation 25 of MF Regulations, on its activities and the compliance with MF Regulations
Compliance Test Report by AMC to SEBI (CTR): A report that AMC needs to submit to SEBI on a quarterly basis
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Securities and Exchange Board of India
CIRCULAR
SEBI/HO/IMD/IMD-I DOF2/P/CIR/2021/550 April 12, 2021
All Mutual Funds (MFs)/
Asset Management Companies (AMCs)/
Trustee Companies/ Board of Trustees of Mutual Funds/
Association of Mutual Funds in India (AMFI)
Sir / Madam,
Subject: Circular on Reporting Formats for Mutual Funds
A. Pursuant to regulatory revamp exercise of SEBI (Mutual Funds) Regulations,
1996 (hereinafter called as “MF Regulations”) and various circulars issued
thereunder, a circular no. SEBI/HO/IMD/DF2/CIR/P/2021/024 dated March 04,
2021 has been issued. Further, based on the consultation with industry the
formats for the following reports i.e. reports to be submitted by AMCs to
Trustees, by AMCs to SEBI and by Trustees to SEBI have been reviewed and
revised as under:
1. Reporting by AMCs to Trustees
1.1. Bi-monthly Compliance Certificate (BCC)
In partial modification to the SEBI circular No. MFD/CIR/09/014/2000
dated January 5, 2000, the Compliance Certificate to be submitted by
the AMC to the Trustees on a Bi-monthly basis shall be discontinued.
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Securities and Exchange Board of India
1.2. Half yearly Compliance Certificate (HYCC) by AMC to Trustees
In partial modification to the SEBI circular No. MFD/CIR/09/014/2000
dated January 5, 2000, the Compliance Certificate to be submitted by
the AMC to the Trustees on an half yearly basis shall be discontinued.
The contents of both BCC and HYCC have been suitably incorporated in the
Quarterly Report by AMC to Trustees.
1.3. Quarterly Report by AMC to Trustees (QR)
The AMC shall submit QR to the trustees, as required in sub-regulation
(4) of Regulation 25 of MF Regulations, on its activities and the
compliance with MF Regulations and various circulars issued
thereunder. The format of QR is prescribed at Annexure I. The same
shall be submitted by AMC to Trustees by 21st calendar day of
succeeding month for the quarters ending March, June, September and
December.
2. Reporting by AMCs to SEBI
2.1. Compliance Test Report by AMC to SEBI (CTR)
To synchronize the frequency of submission of the CTR and QR, SEBI
circulars No. MFD/CIR/5/360/2000 dated July 4, 2000, SEBI/ IMD/CIR
No. 11 /36222/2005 dated March 16, 2005 and SEBI/IMD/CIR NO
6/98057/07 dated July 5, 2007 have been modified to the extent that,
instead of exceptional reporting, complete CTR shall be submitted by
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Securities and Exchange Board of India
AMC to SEBI on a quarterly basis, by 21st calendar day of succeeding
month for the quarters ending March, June, September and December.
The revised format of CTR is prescribed at Annexure II.
3. Reporting by Trustees to SEBI
3.1. Half Yearly Trustee Report by Trustees to SEBI (HYTR)
a) In partial modification to the SEBI circular No. MFD/CIR/09/014/2000
dated January 5, 2000, the HYTR containing the broad coverage of report
of trustees to SEBI has been revised & prescribed at Annexure III.
b) Trustees, shall submit corrective steps taken with respect to the non-
compliance reported in the HYTR.
c) Trustees shall continue to submit HYTR for the half year ending
September and March within two month from the end of the half year.
B. Applicability
1. For QR and CTR reports, the circular shall come into effect for reporting from
the quarter ending June, 2021;
2. For HYTR report, the circular shall come into effect for reporting from the half-
year ended March, 2021;
3. BCC and HYCC shall be discontinued subsequent to the effective date of the
QR report as mentioned at paragraph B(1) above.
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Securities and Exchange Board of India
C. This circular is 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 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,
Hruda Ranjan Sahoo
Deputy General Manager
Tel no.: 022-26449586
Email: hrsahoo@sebi.gov.in
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