Announcing this at a press conference here today, AMFI chairman A P Kurian said that the AMFI board has approved various initiatives like semi-annual disclosure of portfolio, recommendations regarding NPA, formation of audit committee of trustees, setting up valuation committee by asset management companies, investor education, setting up of committees on best practices, formulate proposal for individual retirement plan and review impact of credit policy measures.

In the case of disclosure, the AMFI has suggested SEBI norms for mandatory semi-annualdisclosure to mutual funds. Currently the mutual fund regulation provides for disclosure of full portfolio in the balance sheet and the annual report sent to the unit holders once a year. Now in order to enhance the level of disclosure standards and to bring it on par with international levels, the AMFI has suggested that the MF's should made disclosure of portfolio twice in a year.

Besides these, the AMFI board has suggested formation of audit committee by the board of trustees, formation of valuation committee by the AMC, trading securities by employees of AMC, investor education and training of agents and intermediaries. In the case of audit committee, the AMFI has suggested that the board of trustees may constitute an audit committee of the trustees which will review the internal audit systems and the recommendations of the internal and statutory audit reports and ensure rectification as suggested by the auditors., while AMFI has made its recommendations that AMC should constitute an in house valuationcommittee consisting of senior executives such as fund manager, compliance officer and executive in charge of accounts.

In its efforts to upgrading standards at par with international levels, AMFI has constituted a standing committee on best practices which will review matters relating to sales practices, advertising guidelines and such other related areas so that the industry as a whole could adopt best practices in all areas and thus promote a clean and healthy image for the industry.

According to Kurian, AMFI's standing committee on tax and other matters headed by K N Atmaramani of Tata Mutual Fund is working on a proposal for introduction of long-term savings plan for retirement benefits on the lines of schemes in the USA. The proposals in this regard almost are in the final stage and would be announced very soon, he added.