SEBI investor charter for mutual funds (India)

From WebNotes, a public knowledge base. Last updated 12 May 2026. Reading time ~9 min.

The SEBI investor charter for mutual funds is a standardised document mandated by SEBI circular SEBI/HO/IMD/IMD-PoD-1/P/CIR/2021/622 dated 13 August 2021 that each mutual fund asset management company (AMC) must display prominently on its website, include in the Statement of Additional Information (SAI), and make available to investors at every point of interaction. The investor charter sets out, in plain language, the rights of investors and the obligations of the AMC and its service providers in relation to those rights. It is one of SEBI’s investor-education and grievance-prevention tools and complements the SCORES portal and the SEBI Investor Protection Fund as the triad of investor protection mechanisms for mutual fund investors in India. The charter is grounded in the SEBI (Mutual Funds) Regulations, 1996 and the SEBI Act, 1992.

Background

SEBI introduced investor charters across multiple regulated sectors (broking, depository, investment advisers, portfolio managers) simultaneously in 2021 as part of a broader initiative to standardise investor rights disclosure. In the mutual fund sector, the charter was preceded by:

The Key Information Memorandum (KIM) and SID regime (which contained statutory risk disclosures).
The AMFI investor education programme (“Mutual Fund Sahi Hai”).
The SCORES escalation pathway for unresolved grievances.

Despite these mechanisms, investor surveys indicated that a significant proportion of mutual fund investors were unaware of their rights with respect to account statements, grievance timelines, and exit window entitlements. The investor charter addresses this gap by providing a single consolidated rights statement.

Content of the investor charter

SEBI prescribes the content and format of the investor charter. The document covers:

A. Rights of investors

Right to information: Investors are entitled to the SID, SAI, and KIM free of charge on request. The AMC must maintain updated versions on its website.
Right to receive account statements: Account statements must be dispatched within 5 business days of each transaction (electronic). Annual physical consolidated account statements (CAS) are provided by CAMS/KFintech if no transaction occurred in the year.
Right to receive NAV information: NAV must be published daily on the AMFI website and the AMC website.
Right to receive financial results: Half-yearly unaudited and annual audited scheme financial results must be published.
Right to vote: Investors may vote on changes to fundamental attributes or winding-up of schemes. The threshold is 75% by value.
Right to exit without load: When fundamental attributes of a scheme change, investors receive a mandatory 30-day exit window at NAV without exit load per Regulation 18(15A).
Right to redeem: Open-ended schemes must process redemptions within 3 business days (equity) or 2 business days (liquid) of the transaction date.
Right to grievance redressal: Grievances must be acknowledged within 3 business days and resolved within 30 calendar days by the AMC. Unresolved grievances may be escalated to the SCORES portal.
Right to nomination: Investors may nominate up to three nominees.
Right to unclaimed dividends/redemptions: Unclaimed amounts are transferred to the Investor Protection Fund (IPF) after a specified period; investors may still claim these amounts through the AMC.

B. Obligations of investors

To provide accurate and complete KYC (Know Your Customer) details.
To keep contact details (email, mobile) updated.
To read the SID/KIM before investing.
To register nominations.
To update nominee details on material life events (marriage, death of nominee).

C. Dos and Don’ts

The charter includes a plain-language “Dos and Don’ts” section advising investors to:

Verify the AMFI registration number (ARN) of their distributor.
Check scheme details on the AMFI website before investing.
Not provide blank-signed transaction forms to distributors.
Not accept cash receipts for mutual fund investments.

D. Grievance redressal mechanism

The charter must provide the step-by-step grievance process:

Raise grievance with AMC (Investor Relations Officer/email/toll-free number).
If unresolved within 30 days → escalate to SEBI SCORES portal.
If unresolved via SCORES → escalate to SEBI Ombudsman (selected cases).

Display and distribution obligations

AMCs must:

Display the investor charter on their homepage and in the “Investor Relations” section.
Include the investor charter in the SAI (updated annually).
Provide a link to the investor charter in every digital communication (email, SMS, account statement).
Display the charter at AMC offices, registrar offices, and authorised service centres.

Enforcement

SEBI’s IMD monitors compliance through periodic inspections of AMC websites and through investor feedback received via SCORES. AMCs found to have an outdated or incomplete investor charter on their website have received SEBI advisory letters.

References

SEBI Circular SEBI/HO/IMD/IMD-PoD-1/P/CIR/2021/622, 13 August 2021, Investor Charter.
SEBI (Mutual Funds) Regulations, 1996, Regulation 18(15A), Regulation 29.
SEBI Master Circular SEBI/HO/IMD/IMD-PoD-1/P/CIR/2024/137, 27 May 2024.
AMFI, “Investor Charter display guidelines”, amfiindia.com.

Reviewed and published by

WebNotes Editorial Team

The WebNotes Editorial Team covers Indian capital markets, payments infrastructure and retail investor procedures. Every article is fact-checked against primary sources, principally SEBI circulars and master directions, NPCI specifications and the official support documentation published by the intermediary in question. Drafts go through a second-pair-of-eyes review and a separate compliance read before publication, and revisions are tracked against the SEBI and NPCI rule changes referenced in the methodology section.

Last reviewed: 12 May 2026
Conflicts of interest: WebNotes is independent. No relationship with any broker, registrar or bank named in this article.