The number of days that Asset Management Companies (AMCs) have to make their Draft Scheme Information Documents (SIDs) available for public comments has been reduced to nearly a third. They have to do so only now for eight working days versus the earlier 21 working days.
In a circular titled "Simplification of Offer Document" issued on December 20, the Securities and Exchange Board of India (SEBI) stated that SIDs on which the regulator's observations have been issued need to be uploaded for public comments only for eight days.
The previous directions had required AMCs to submit soft copy of the Draft SIDs with SEBI to be made available on SEBI’s website for 21 working days from the date of filing for receiving the public comment on the adequacy of disclosures made in the document.
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According to the regulator, the structure and content of the documents have been standardised. Its format was revised in November 2023 to streamline the dissemination of relevant information to investors, rationalise the preparation of SID and facilitate its periodic updation.
Therefore the requirement of uploading it so many days prior to the final document, for public comments, was reviewed.
Based on this exercise and public consultation, the regulator has decided that the SID on which observations are issued by SEBI need to be uploaded on the regulator website only for eight working days for receiving public comments on the adequacy of disclosures made in the document.
Therefore Clause 1.1.3.1.a. of the Master Circular on Mutual Funds dated June 27,2024, stands modified as under:
“Draft SID on which SEBI observation letter has been issued shall be made available on SEBI’s website – http:// www.sebi.gov.in for at least 8 working days for receiving public comments on the adequacy of disclosures made in the document after which AMC may launch the scheme and file final offer documents (SID and KIM) in line with the provisions of clause 1.1.3.3 of SEBI Master Circular on Mutual Funds dated June 27, 2024.
Validity of SEBI observation on SID will be in accordance with clause 1.3 of Master Circular on Mutual Funds dated June 27, 2024."
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