Regulatory Alerts2025-01-17
SEBI Circular on Disclosure of Risk Adjusted Return Information Ratio for Mutual Fund Schemes
The Securities and Exchange Board of India mandates that Asset Management Companies disclose the Information Ratio for equity-oriented mutual fund schemes on their websites daily. The circular specifies a uniform calculation methodology based on excess returns relative to a Tier 1 benchmark and requires the Association of Mutual Funds in India to provide machine-readable data. Additionally, fund houses must educate investors about the metric's significance and embed standardized explanatory hyperlinks on their platforms within three months of issuance.
Share