CODE OF CONDUCT FOR MUTUAL FUNDS :
(a) Mutual fund schemes should not be organised, operated, managed or the portfolio of securities selected, in the interest of sponsors, directors of AMCs, members of Board of trustees or directors of trustee company, associated persons as in the interest of special class of unit holders rather than in the interest of all classes of unit holders of the scheme.
(b) Trustees and AMCs must ensure the dissemination to all unit holders of adequate, accurate, explicit and timely information fairly presented in a simple language about the investment policies, investment objectives, financial position and general affairs of the scheme.
(c) Trustees and AMCs should avoid excessive concentration of business with broking firms, affiliates and also excessive holding of units in a scheme among a few investors.
(d) Trustees and AMCs must avoid conflicts of interest in managing the affairs of the schemes and keep the interest of all unit holders paramount in all matters.
(e) Trustees and AMCs must ensure schemewise segregation of bank accounts and securities accounts.
(f) Trustees and AMCs shall carry out the business and invest in accordance with the investment objectives stated in the offer documents and take investment decision solely in the interest of unit holders.
(g) Trustees and the AMC shall maintain high standards of integrity and fairness in all their dealings and in the conduct of their business.
(h) Trustees and AMC must not use any unethical means to sell; market or induce any investor to buy their schemes.
(i) Trustees and the AMC shall render at all times high standard of service, exercise due diligence, ensure proper care and exercise independent professional judgment.
(j) The AMC shall not make any exaggerated statement, whether oral or written, either about their qualifications or capability to render investment management services or their achievements.
(k) (a) The sponsor of the mutual fund, the trustees or the asset management company and any of their employees shall not render, directly or indirectly any investment advice about and security in the publicity accessable media, whether real time or non-real-time, unless a disclosure of his interest including long or short petition in the said security has been made, while rendering such advice.
(b) In case, an employee of the sponsor, the trustees or the asset management company is rendering such advice, he shall also disclose the interest of his dependent family members and the employer including their long or short position in the said security, while rendering such advice.