Sebi Simplifies Disclosure Document Format for Portfolio Managers
To enhance business efficiency, Sebi introduced a streamlined format for portfolio managers' disclosure documents. This format includes static and dynamic sections, facilitating easier updates and investor understanding. The improved structure aims to aid operational convenience and simplify information dissemination for portfolio management services.
- Country:
- India
In a bid to enhance the ease of doing business, the Securities and Exchange Board of India (Sebi) has launched a streamlined format for disclosure documents required by portfolio managers. Declared on Tuesday, this new format divides the documents into 'dynamic' and 'static' sections, Sebi announced via circular.
The 'dynamic' section encompasses content frequently updated, such as client representation, financial performance, and audit observations over the past three years. Meanwhile, the 'static' section contains more permanent disclosures like disclaimer clauses, service descriptions, risk factors, and the portfolio manager's diversification strategy.
This revised format aims not only to simplify document management for portfolio managers but also to ease investor comprehension. Material changes will be highlighted clearly in communications, providing clarity for stakeholders. The new procedure has been designed to ensure that any updated sections receive certification from an independent Chartered Accountant and be reported to both clients and Sebi within seven working days.
(With inputs from agencies.)
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