I respect Sebi's sentiment and their concern for small investors due to which they have issued this circular. However, my concern is that these measures might fail to achieve the required purpose, while adding overheads and impeding performance of good fund managers. My experience is that documentation does not ensure good decision making. Good performance is a function of hiring talented people with the highest integrity and compensating them based on performance and allowing them the freedom, time and resources to identify the best companies to invest in. Also, with this fund managers are fully accountable, which is not possible if everyone gets involved in decision making.
Investors also vote with their money.
They choose funds which have a track record of good performance and disclosures. They tend to avoid funds that stray from this line. Yet, Sebi's objectives are laudable. What they could ask for is an overall documented process as that followed by AMCs to see how decisions are made rather than create paper for each decision. Except for a few banks and FMCG stocks your infotech fund and internet opportunities fund mirror each other.