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`Disclosure norms must to help out investors'

Our Bureau

KOCHI, Nov. 3

``TRANSPARENCY and disclosure norms must be adhered to so that investors can take well-informed decisions'' according to Mr P.K. Nagpal, Chief General Manager of SEBI.

Delivering the keynote address on `Mutual fund -- a SEBI perspective' at a study circle organised by Canbank Mutual Fund, he said that due to a series of measures initiated by SEBI in the recent past towards protecting investor interests, the mutual fund industry is now well poised for rapid growth.

Mr Nagpal said the disclosure norms stipulated by SEBI compare well with those prevailing in the developed countries such as the US, the UK and Australia, a press release here said.

Commenting on the status of mutual fund industry in India, Mr Nagpal said there are 40 mutual funds in India, including UTI. Mutual fund industry is performing better than the primary markets.

With about 411 schemes, there is a general tendency to launch open-ended schemes. Out of the Rs 9,000 crore collected during the month, Rs 6,500 crore have been invested in debt schemes. He also advised the mutual funds to ensure adherence to prudential norms.

SEBI does not approve the offer documents but now insists on due diligence certificates from all mutual funds. To keep the investors abreast of all material changes, SEBI has issued guidelines for updation of offer documents every two years and also a re ference addendum, as more and more investment plans are introduced in the same schemes.

SEBI now insists that such plans be displayed on the Website within 21 days and a copy be filed with SEBI, the release added.

Mr Nagpal was optimistic about the growth of mutual funds and looked forward to a more transparent and enduring relationship to help investors take their decisions.