Do’s and Don’ts for Mutual Fund:

1. Keep track of the expiry date of your NISM V-A (MFD) certification and ensure that your AMFI registration (EUIN) is valid.
2. Keep yourselves updated about latest information pertaining to the Mutual Fund Industry including scheme specific information.
3. Help customers fully understand the features, benefits, risks and costs of the financial products they buy by doing the following:
   • Provide complete and latest information of schemes to investors in the form of SAI, SID, addenda, performance reports, fact sheets, portfolio disclosures and brochures.
   • Encourage investors to go through SAI/SID/KIM before deciding to make investments.
   • Highlight risk factors of each scheme.
   • Disclose all material information to the investor including all the commissions (in the form of trail or any other mode) received for the different competing schemes of various Mutual Funds from amongst which the scheme is being recommended to the investors.
4. Ensure that critical operations such as forwarding forms and cheques to AMCs/registrars and dispatch of statement of account and redemption cheques to investors are done within the time frame prescribed in the SID/SAI and SEBI Mutual Fund Regulations.
5. Maintain confidentiality of all investor details, deals and transactions.
6. Follow the Top picks and other house views provided by the Central team. The house view is what you should be sharing with the customers.
7. Do not misrepresent or exaggerate information.
8. Do not assure returns in any type of scheme unless the SID is explicit in this regard.
9. DO not collude with investors in faulty business practices such as bouncing of cheques, wrong claiming of dividend/redemption cheques, splitting of applications in the schemes to circumvent regulations for any benefit, etc.
10. Do not undertake commission driven malpractices such as:
    • recommending inappropriate products solely because of higher commissions
    • encouraging over transacting and churning of Mutual Fund investments to earn higher commissions.
    • Splitting of applications to earn higher transaction charges / commissions.
11. Abstain from making negative statements about any AMC or scheme and ensure that comparisons, if any, are made with similar and comparable products along with complete facts.

Do’s and Don’ts For PMS, AIF & Corporate Deposit:-

1. Ensure that NISM certification of XXI-A PMS is complied. (Applicable only for PMS)
2. Classify the application at the Customer Level whether “advisory” or “execution only” and all necessary disclosures shall be made to the customer. This information is captured in the application form of the PMS/AIF provider that is required to be filled by the client. (Applicable only for PMS/AIF)
3. Be diligent in attesting / certifying investor documents and performing In-Person -Verification (IPV) of investors for the KYC process in accordance with the guidelines prescribed by SEBI/ KYC Registration Agency (KRA) from time to time.
4. Consider investor's interest as paramount and take necessary steps to ensure that the investor's interest is protected in all circumstances.
5. Be fully conversant with the key provisions of the Disclosure Document and the contract being entered between the customer and the Portfolio Manager in case of PMS/AIF & the contract being entered between the customer and the FD Issuer in case of corporate Deposit.
6. Provide full and latest information of strategy solicited to investors in the form of performance reports including risk factors, portfolio strategy, deviations and highlight the assumptions if any (Applicable only for PMS/AIF)
7. Provide full and latest information of the product in the form of interest rates as well as availability of early withdrawal options including risk factors and highlight the assumptions if any. (In case of corporate deposits)
8. Disclose to the investors all material information including all the commissions received for the purpose of soliciting such investments.
9. Abstain from indicating or assuring returns in any type of strategy. (Applicable in case of PMS/AIF)
10. Keep yourselves abreast with the developments relating to the industry (PMS/AIF & Corporate Deposits), and all material aspects and deal with the investors appropriately having regard to the updated information.
11. Maintain confidentiality of all investor details, deals and transactions.
12. Always keep investor's interest and suitability to their financial needs as paramount and that extra commission or incentive should never form the basis for recommending a portfolio management strategy to the investor.
13. Do not offer any rebate or commission back to investors and abstain from attracting investors through temptation of rebate/gifts etc.
14. Do not undertake commission driven malpractices such as recommending inappropriate strategy/corporate deposit solely because of higher commissions.
15. Do not make negative statements about any other Portfolio Manager or strategy and ensure that comparisons, if any, are made with similar and comparable products along with complete facts. (Applicable for PMS/AIF)
16. Observe high standards of ethics, integrity, and fairness in all its dealings with all parties - investors, Portfolio Manager. Always render high standards of service, exercise due diligence, and ensure proper care.