With a view to increasing transparency, the Securities and Exchange Board of India (Sebi) has asked for additional disclosures in the Consolidated Account Statement (CAS) sent to investors by mutual funds.
From October 1, the CAS will provide two important additional details. The first is the gross commission paid to distributors . This includes the amount of actual commission paid by AMCs to distributors (in absolute terms) during the half-year period against the concerned investor's total investments in each MF scheme. 'Commission' refers to all direct monetary payments and other payments made in the form of gifts/rewards, trips, event sponsorships, etc to investors.
CAS will also have to give the scheme's average total expense ratio (in percentage terms) for the half-year period for each scheme's applicable plan (regular or direct or both) where the concerned investor has invested.
At present, CAS provides information with regard to in terms of name of scheme/s where the investor has invested, number of units held and its market value, among other details.