Securities and Exchange Board of India (SEBI) has asked mutual funds to provide the amount of actual commission paid to distributors in the half-yearly consolidated account statement (CAS) issued to investors.
The mutual fund regulator has also asked fund houses to disclose remuneration paid to CEO, CIO, COO, etc.in a financial year on their websites. Fund house should also state name, designation and remuneration received by all employees who draw above ₹60 lakh annually.
This is part of a slew of measures announced by the market watchdog to increase transparency of information to investors.
In a circular issued today, Sebi elaborated that the term "commission" includes all direct monetary payments and other rewards like gifts, trips, event sponsorship etc.
The CAS for the half year should also mention the scheme's average Total Expense Ration (TER) in percentage value for both direct and regular plan. Mutual funds have to issue the half-yearly CAS to all investors, excluding those who do not have any mutual fund holdings and where no commission against their investment has been paid to distributors, during the concerned period.
SEBI has also directed mutual funds to provide the total purchase value/cost of investment in each scheme in CAS.