Under SEBI regulations, how frequently must the Scheme Information Document (SID), Statement of Additional Information (SAI), and Key Information Memorandum (KIM) be updated for ongoing schemes?

[ A ]All three documents must be revised on a weekly basis and mailed physically to every registered unitholder.

[ B ]SID and KIM must be updated at least once every half-year (within 1 month from end of September and March), while SAI is updated within 3 months of the financial year-end.[ CORRECT ]

[ C ]SID and SAI are never updated after scheme inception unless the mutual fund winds up its operations entirely.

[ D ]KIM is updated every 10 years, while SID is updated only when the AMC changes its corporate headquarters address.

Takeaway

Option B is correct: SID and KIM must be updated at least once every half-year (within 1 month from end of September and March), while SAI is updated within 3 months of the financial year-end.

Derivation

SEBI specifies regular updation cycles: For open-ended and interval schemes, the SID and KIM must be updated within one month from the end of each half-year (based on data as of September and March). The SAI must receive a regular update within 3 months of every financial year-end (by June 30), with material changes updated on an ongoing basis on fund and AMFI websites. This question tests compliance timelines for document maintenance. Candidates frequently confuse half-yearly document updates with annual financial filings.

Why the others fail

A — All three documents must be revised on a weekly basis and mailed physically to every registered unitholder.

Weekly statutory revisions and physical mailings are operationally impractical and contradict SEBI's prescribed half-yearly timelines.

C — SID and SAI are never updated after scheme inception unless the mutual fund winds up its operations entirely.

Failing to update offer documents violates SEBI mandates requiring continuous accuracy of portfolio, risk, and expense data.

D — KIM is updated every 10 years, while SID is updated only when the AMC changes its corporate headquarters address.

A 10-year updation cycle is non-compliant; KIM must be updated at least half-yearly to reflect current performance and portfolio data.