The Telegraph
Since 1st March, 1999
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Bare-all signal for fund managers

Mumbai, Nov. 27: The Securities and Exchange Board of India (Sebi) has directed fund managers to disclose the performance of their portfolios to their clients, including the performance indicators calculated on the basis of weighted average method.

Sebi said the new directives will be applicable to each category of investments for the preceding three years in case of discretionary portfolio managers.

Sebi said the new directive will enable investors to understand how their funds have been deployed and give them an objective analysis of the performance of the portfolios. Sebi's latest measure is to plug likely loopholes arising out of investors being kept in the dark on the poor performance of fund managers.

“It has been decided to disclose the performance of benchmark indices in the periodical reports to be furnished to the client in terms of Sebi regulations,” the regulator said. “The portfolio managers may select any of the indices available, for instance sensex, Nifty, BSE 100, BSE 200 or S&P CNX 500, depending on the investment objective and portfolio of the client,” Sebi said. “These benchmark indices may be decided by the portfolio managers and any change at a later date will be recorded and justified with specific reasons,” it added.

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