Synopsis: SEBI has extended the timeline for mutual funds and portfolio managers to submit offsite inspection data, allowing 15 calendar days instead of 10. This move aims to ease compliance burdens while ensuring transparency and regulatory oversight.
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In a move aimed at easing compliance requirements and improving the ease of doing business, the Securities and Exchange Board of India (SEBI) has extended the submission deadlines for mutual funds and portfolio managers. The decision grants these entities additional flexibility in reporting data while maintaining regulatory oversight.
As per SEBI’s latest circular, mutual funds will now have 15 calendar days from the end of each quarter to submit their daily data in a consolidated monthly file. Earlier, the deadline was set at 10 calendar days. This change is expected to streamline operations and allow fund houses to manage reporting processes more efficiently. Registrar and Transfer Agents (RTAs) will continue submitting data on an ongoing basis as per SEBI’s guidelines.
Portfolio managers will also benefit from the extended deadline, as they now have 15 calendar days to submit their quarterly reports. These reports must include detailed client data, covering categories such as ‘Client Folio AUM’ and ‘Client Holding Master’. SEBI has structured this data submission process as part of its offsite inspection and surveillance mechanism to ensure transparency and compliance in the financial market.
Industry stakeholders had reportedly provided feedback to SEBI regarding the challenges in meeting the previous deadlines. In response, SEBI stated, "It has been decided to extend the timelines for submission of offsite inspection data," emphasizing its commitment to reducing compliance pressure while maintaining strict regulatory norms.
The decision is effective immediately and is expected to significantly benefit fund houses, portfolio managers, and other stakeholders in the financial sector. Meanwhile, reports suggest that SEBI is also working on a new penalty system to prevent brokerage firms from being fined multiple times for the same violation.
Disclaimer: This article is for informational purposes only and should not be considered as financial or legal advice. Investors are advised to consult professional advisors before making any financial decisions.
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