On December 20, 2024, Securities Exchange Board of India (“SEBI”), in exercise of powers conferred under Section 11(1) of Securities Exchange Board of India Act, 1992, read with the provisions of Regulation 77 of SEBI (Mutual Funds) Regulations, 1996, released a circular, vide Circular No. SEBI/HO/IMD/IMD-RAC-1/P/CIR/2024/179[1] dated December 20, 2024 (“Circular”), regarding the simplification of offer documents. The Circular aims to simplify the process for uploading and reviewing of Scheme Information Documents (“SIDs”). The Circular modifies the existing guidelines outlined in SEBI’s Master Circular No. SEBI/HO/IMD/IMD-PoD-1/P/CIR/2024/90 on Mutual Funds, dated June 27, 2024 (“Master Circular”). The provisions contained in this Circular shall come into force with immediate effect.
As per Clause 1.1.3.1 of the Master Circular read with Circular No. IIMARP/MF/CIR/06/793/98 dated March 31, 1998, the Asset management Companies (“AMCs”) were mandated to submit a soft copy of the draft scheme information documents with SEBI. These documents were to be made available on the SEBI website for a period of 21 working days, commencing from the date of filing, in order to invite public comments on the adequacy of the disclosures within the document. SEBI, through this Circular, amends the Master Circular and mandates the SID to now be uploaded on the SEBI website for at least 8 working days, to receive public comments on the adequacy of the disclosures. Furthermore, the format of the SID was revised as per Circular No. SEBI/HO/IMD/IMD-RAC-2/P/CIR/2023/000175 dated November 1, 2023. This revision was made to streamline the dissemination of relevant information to investors, rationalize the preparation of SIDs, and facilitate their periodic updates. Subsequently, the AMCs may file the final offer documents (SID and key information memorandum) in accordance with the provisions of Clause 1.1.3.3 of the Master Circular, which discusses the filing of the final SID. Accordingly, Clause 1.1.3.1.a. of the Master Circular is now amended to include the information as specified herein and Clause 1.1.3.1. (c) and (d) of the Master Circular stand deleted.
[1] https://www.sebi.gov.in/legal/circulars/dec-2024/simplification-of-offer-document_90097.html
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