AMFI Investor Charter
A. Vision and Mission Statements for investors
B. DESCRIPTION OF ACTIVITIES / BUSINESS OF THE ENTITY
- To offer investment opportunities to the investors through various MF schemes.
- To pool money by issuing units to the investors at the applicable Net Asset Value (NAV).
- Deploy the monies pooled from investors in various securities and manage the portfolio in accordance with objectives as disclosed in offer document and in compliance with all applicable regulations.
- Disclose various information including NAV on daily basis, Risk-o-meter of schemes,portfolio of the schemes, performance of the schemes, annual report or abridged annual report etc.
- Pay redemption proceeds, dividends etc. to the investors.
- Process investor’s financial and non–financial transactions/ service requests.
C. SERVICES PROVIDED FOR INVESTORS
Non Financial Transaction
- Providing Consolidated Account Statement (CAS) for each calendar month, by 15th of succeeding month
- Providing Consolidated Account Statement (CAS) for the half year By 21st of succeeding month.
- Requestfor Dematerialisation of units within 2 Days.
Financial Transactions (Commercial Transactions)
- Pay out of redemption proceeds within 10 days.
- Pay out of dividend from the record date within 15 Calendar days.
- Pay out of proceeds on maturity of a close ended scheme within 10 Days.
- Issue of statement of accounts specifying the number of units allotted or issue units in the dematerialized form, 5 days from the date of closure of the initial subscription list or from the date of receipt of the application.
- Refund of subscription Money in case of New Fund Offer, 5 days from the date of closure of the initial subscription list
Complaints/Requests
Submission of ATR to SEBI in respect of complaint received from investor through SCORES in 30 days.
D. GRIEVANCE REDRESSAL MECHANISM FOR INVESTORS
- In case of any grievance / complaint, an investor should approach the concerned Mutual Fund / Investor Service Centre of the Mutual Fund. If the complaint remains unresolved, the investor may write to the designated Investor Relations Officer of the mutual fund. The name of the Investor Relations Officer / contact person is generally mentioned in the cheme Information Document (SID) of the mutual fund scheme, and also on the website of the concerned mutual fund, whom one may approach / write to in case of any query, complaints or grievance.
- If the investor’s complaint is not redressed satisfactorily, one may lodge a complaint with SEBI on SEBI’s portal, named , ‘SCORES’, which is a centralized web based complaints redress system. SEBI takes up the complaints registered via SCORES (https://scores.gov.in/scores/Welcome.html) with the concerned mutual fund / intermediary for timely redressal. SCORES facilitates tracking the status of the complaint.
- Investors may send their physical complaints to: Office of Investor Assistance and Education, Securities and Exchange Board of India, SEBI Bhavan. Plot No. C4 A, ‘G’ Block, Bandra Kurla Complex, Bandra (E), Mumbai 400 051
E. DO’s and DON’Ts FOR INVESTORS
Do’s
- Check registration status of the Mutual Fund on SEBI website before transacting with them.
- Read all Scheme related documents and understand the scheme features and the risks involved and suitability of the scheme to the investor’s risk profile.
- Provide and keep updated KYC details including address, tax status, residency, and other key information such as PAN & bank account details.
- Provide own email address and mobile number and to promptly notify changes to this information , if any.
- Check Account Statement & Common Account Statements for discrepancy, if any and promptly bring any such discrepancies to the notice of the Asset Management Company.
- Read communications / notices / addendums / press releases, etc. sent / or published by the mutual fund via newspapers, email, etc.
- Consider availing nomination facility in respect of investments made in Mutual Funds.
- Choose the plan for investments i.e.Direct Plan or Regular Plan.
- Invest through registered and regulated entities
- Keep confidential critical information such as user ID, password, etc.
- Invest by issuing payments in the name of the Mutual fund / scheme only and not in the name of any other entity.
Don’ts
- Do not invest based on speculation, rumor or informal advice.
- Do not fall for the promise of indicative or exorbitant or assured returns.
- Do not issue blank cheques or blank signed transaction instructions.
- Do not use third party bank accounts for fund flows for subscription or redemption of units.
F. RIGHTS OF INVESTORS
- Right to receive information and details about the scheme including about its investment philosophy, risk profile, portfolio holdings, fees, charges and expenses and such other information as may be required under SEBI regulations to enable investors to make an informed decision about investing in a scheme, prior to making any such investment.
- Right to timely receipt of account statement evidencing a transaction as specified in the SEBI Mutual Funds Regulations, or to receive such statements on request.
- Right to receive Consolidated Account Statement (CAS) at a periodic frequency as specified by SEBI.
- Right to timely disclosure of daily Net Asset Values (NAV), Portfolio and Performance of each scheme including scheme’s AUM, investment objective, expense ratios on mutual fund website.
- Right to receive Annual report / abridged annual report of the scheme(s) invested in.
- Right to timely receipt of redemption proceeds / dividend payments / refunds, as applicable.
- Right to be notified about any change in the fundamental attributes (features) of amutual fund scheme in which the investor has investments and to be provided a right to exit the scheme without cost, if so desired, as a result of the fundamental attribute change.
- Right to be informed about such disclosures which may have a material bearing on their investments in mutual fund schemes.
- Right to privacy of information in accordance with the applicable laws of the land.
- Right to security of, and access to, information provided to Asset Management Companies and their service providers in relation to investments in mutual funds. Right to have such information corrected and receive confirmation of such correction.
- Right to information about how complaints are handled and can be escalated in the event investors are not satisfied with the resolution provided.
- Right to timely redressal of grievances and complaints within the timelines specified by regulations and the right to escalate complaint not resolved satisfactorily to the Investor Grievance Officer of the respective Asset Management Company.
- Right to escalate unresolved complaints to SEBI via the SCORES portal.
G. RESPONSIBILITIES OF INVESTORS
- To check registration status of the Mutual Fund on SEBI website before transacting with them.
- To read all Scheme related documents and understand the scheme features and the risks involved and suitability of the scheme to the investor’s risk profile.
- To provide and keep updated KYC details including address, tax status, residency, and other key information such as PAN & bank account details.
- To provide own email address and mobile number and to promptly notify changes to this information, if any.
- To check Account Statement & Consolidated Account Statements for discrepancy, if any and promptly bring any such discrepancies to the notice of the Asset Management Company.
- To read communications / notices / addendums / press releases, etc. sent / or published by the mutual fund via newspapers, email, etc.
- To consider availing facility to nominate in respect of investments made in Mutual Funds.
- To choose the plan for investments i.e. Direct Plan or Regular Plan.
- To invest through registered and regulated entities and not to invest based on speculation, rumor or informal advice.
- To keep confidential critical information such as user ID, password, etc.
- To invest by issuing payments in the name of the Mutual fund / scheme only and not in the name of any other entity
- To protect oneself by not falling for the promise of indicative or exorbitant or assured returns.
- To protect oneself by not issuing blank cheques or blank signed transaction instructions.
- To avoid using third – party bank accounts for fund flows for subscription or redemption of units.
H. CODE OF CONDUCT FOR INTERMEDIARIES OF MUTUAL FUNDS(REVISED)
- Consider investor’s interest as paramount and take necessary steps to ensure that the investor’s interest is protected in all circumstances.
- Adhere to SEBI Mutual Fund Regulations and guidelines issued from time to time related to distributors, selling, distribution and advertising practices. Be fully conversant with the key provisions of the Scheme Information Document (SID), Statement of Additional Information (SAI) and Key Information Memorandum (KIM) as well as the operational requirements of various schemes.
- Comply with SEBI guidelines / requirements issued from time to time in preparation of sales, promotional or any other literature about any schemes. Performance disclosures should also comply with the requirements specified by SEBI. Provide full and latest information of schemes to investors in the form of SAI, SID, addenda, performance reports, fact sheets, portfolio disclosures and brochures; and recommend schemes appropriate for the investor’s risk profile and needs.
- Highlight risk factors of each scheme, desist from misrepresentation and exaggeration and urge investors to go through SAI/SID/KIM before deciding to make investments.
- Disclose to the investors all material information including all the commissions (in the form of trail or any other mode) received for the different competing schemes of various Mutual Funds from amongst which the scheme is being recommended to the investors.
- Abstain from indicating or assuring returns in any type of scheme, unless the SID is explicit in this regard.
- Maintain necessary infrastructure to support the AMCs in maintaining high service standards to investors, and ensure that critical operations such as forwarding forms and cheques to AMCs/registrars and despatch of statement of account and redemption cheques to investors are done within the time frame prescribed in the SID/SAI and SEBI Mutual Fund Regulations.
- Do not collude with investors in faulty business practices such as bouncing of cheques, wrong claiming of dividend/redemption cheques, splitting of applications in the schemes to circumvent regulations for any benefit, etc.
- Do not undertake commission driven malpractices such as: a. Recommending inappropriate products solely because the intermediary is getting higher commissions therefrom. b. Encouraging over transacting and churning of Mutual Fund investments to earn higher commissions. c. Splitting of applications to earn higher transaction charges / commissions.
- Abstain from making negative statements about any AMC or scheme and ensure that comparisons, if any, are made with similar and comparable products along with complete facts.
- Intermediaries shall keep themselves abreast with the developments relating to the Mutual Fund Industry as also changes in the scheme information and information on mutual fund / AMC like changes in fundamental attributes, changes in controlling interest, loads, liquidity provisions, and other material aspects and deal with the investors appropriately having regard to the up to date information.
- Maintain confidentiality of all investor details, deals and transactions.
- Intermediaries shall keep investor’s interest and suitability to their financial needs as paramount and that extra commission or incentive should never form the basis for recommending a scheme to the investor.
- Intermediaries shall not rebate commission back to investors and abstain from attracting investors through temptation of rebate/gifts etc.
- To protect the investors from potential fraudulent activities, intermediary should take reasonable steps to ensure that the investor’s address and contact details filled in the mutual fund application form are investor’s own details, and not of any third party. Where the required information is not available in the application form, intermediary should make reasonable efforts to obtain accurate and updated information from the investor. Intermediaries should abstain from filling wrong / incorrect information or information of their own or of their employees, officials or agents as the investor’s address and contact details in the application form, even if requested by the investor to do so. Intermediary should abstain from tampering in any way with the application form submitted by the investor, including inserting, deleting or modifying any information in the application form provided by the investor.
- Intermediaries including the sales personnel of intermediaries engaged in sales / marketing shall obtain NISM certification and register themselves with AMFI and obtain a Employee Unique Identification Number (EUIN) from AMFI apart from AMFI Registration Number (ARN). The Intermediaries shall ensure that the employees quote the EUIN in the Application Form for investments. The NISM certification and AMFI registration shall be renewed on timely basis. Employees in other functional areas should also be encouraged to obtain the same certification.
- Intermediaries shall comply with the Know Your Distributor (KYD) norms issued by AMFI.
- Co-operate with and provide support to AMCs, AMFI, competent regulatory authorities, Due Diligence Agencies (as applicable) in relation to the activities of the intermediary or any regulatory requirement and matters connected thereto.
- Provide all documents of its investors in terms of the Anti Money Laundering / Combating Financing of Terrorism requirements, including KYC documents / Power of Attorney / investor’s agreement(s), etc. with Intermediaries as may be required by AMCs from time to time.
- Be diligent in attesting / certifying investor documents and performing In Person Verification (IPV) of investor’s for the KYC process in accordance with the guidelines prescribed by AMFI / KYC Registration Agency (KRA) from time to time.
- Adhere to AMFI guidelines and Code of Conduct issued from time to time related to distributors, selling, distribution and advertising practices.
- Intimate the AMC and AMFI any changes in the intermediary’s status, constitution, address, contact details or any other information provided at the time of obtaining AMFI Registration.
- Observe high standards of ethics, integrity and fairness in all its dealings with all parties – investors, Mutual Funds / AMCs, Registrars & Transfer Agents and other intermediaries. Render at all times high standards of service, exercise due diligence, and ensure proper care.
- Intermediaries satisfying the criteria specified by SEBI for due diligence exercise, shall maintain the requisite documentation in respect of the “Advisory” or ” Execution Only” services provided by them to the investors.
- Intermediaries shall refund to AMCs, either by set off against future commissions or payment, all incentives of any nature, including commissions received, that are subject to claw-back as per SEBI regulations or the terms and conditions issued by respective AMC.
- In respect of purchases (including switch-in’s) into any fund w.e.f. January 1, 2013, in the event of any switches from Regular Plan (Broker Plan) to Direct Plan, all upfront commissions paid to distributors shall be liable to complete and / or proportionate claw-back.
- Do not indulge in fraudulent or unfair trade practices of any kind while selling units of Schemes of any mutual fund. Selling of units of schemes of any mutual fund by any intermediary directly or indirectly by making false or misleading statement, concealing or omitting material facts of the scheme, concealing the associated risk factors of the schemes or not taking reasonable care to ensure suitability of the scheme to the investor will be construed as fraudulent / unfair trade practice. Note: SID should be read in conjunction with SAI, and not in isolation.
I. Disclaimer
Candour Asset Management LLP is a mutual fund distributor (ARN 318107) registered with AMFI. Candour Asset Management LLP is permitted to render incidental advice with respect to mutual fund products only to its mutual fund distribution clients. For every other purpose, including distribution of non-mutual fund products, the circulated material is for informational purposes only. Further, it is not intended as investment advice or an opinion concerning securities or a public offer proving a basis for an investment decision. The views or expressions contained in the circulated material are not necessarily of Candour Asset management LLP and Candour Asset Management LLP neither assumes any responsibility/liability nor does guarantee its accuracy, suitability, completeness and adequacy. The figures and data that may be appearing in the material are taken from various sources deemed reliable by Candour Asset Management LLP. The content of the material including images, charts, graphics and pictures are protected intellectual properties and cannot be amended, copied, reproduced, replicated, republished, uploaded, posted, published, transmitted, displayed or distributed for any non-personal use without obtaining prior written permission, any non-adherence of which may attract appropriate legal action.
Mutual Fund investments are subject to market risk, read all scheme related documents carefully. The past performance of the scheme is not indicative of future performance. Investors are advised to seek appropriate advice from experts before taking any investment decisions. Nothing in the circulated material is intended to construe an advertisement or an investment, financial advice and/or solicitation, advice to buy, sell or deal in any financial product.
Subscribe To Our Blog
Our Services
Resources
Copyright © 2024 Candor. All Rights Reserved.
Developed By Tubo Digital
