SEBI proposed New XBRL based Reporting System for Mutual Funds

Capital market watchdog Securities and Exchange Board of India (SEBI) in February 2011 proposed a new reporting system for mutual funds based on XBRL (eXtensible Business Reporting Language) technology. XBRL is a standardized business reporting tool that enables easy scrutiny of bulk documents without delay. SEBI issued a draft structure of the proposed XBRL system for all the regulatory filings to be made by mutual funds. SEBI is expected to make the new business reporting mechanism mandatory for mutual funds and then expand this system to other segments in phases.

XBRL Taxonomy is a classification system that can be considered as an electronic dictionary for business and financial terms. XBRL consists of a delineation of all the business and financial concepts along with their basic accounting and XBRL properties as well as the interrelationships amongst the concepts.