IND SEBI Insider Dealing Rule Scope


On Oct. 22, IND SEBI amended master circular for mutual funds.


  • IND SEBI issued circular regarding inclusion of mutual fund units in the SEBI (prohibition of insider trading) regulations, 2015, to strengthen regulatory framework.
  • Follows IND SEBI Nov. 2022 issued insider trading prohibition rules, see #90258.
  • Also follows IND SEBI Jun. 2024 issued master circular for mutual funds, #173415.
  • Circular Overview
  • Mutual funds units were included under the SEBI (prohibition of insider trading) regulations, 2015; the amendments shall be applicable from Nov. 1, 2024.
  • Asset management companies (AMCs) shall disclose details of holdings by designated persons of AMCs, trustees, and their immediate relatives from Nov. 1, 2024, quarterly.
  • Requires the reporting of all transactions in the units of AMC's own mutual funds.
  • The transactions reported shall be disclosed in the format specified in annexure B.
  • Observed violations of the regulations shall be disclosed specified in annexure C.
  • Master Circular
  • Modify clause 6.6 of master circular for mutual funds where clause 6.6 shall not be applicable for investments and redemption of mutual fund units, see #173415.
  • These guidelines cover transactions for purchase or sale of any securities such as shares, debentures, bonds, warrants, derivatives, under clause 6.6.2.1 (a).
  • For clause 6.6.2.3(f), all employees shall refrain from profiting from the purchase and sale or sale and purchase of any security within a period of 30 calendar days from the date of their personal transaction; specifies procedures if employee has done so.
  • Clause 6.6.4 of the master circular for mutual funds stands deleted.
  • Effectiveness
  • The circular is effective from Nov. 1, 2024.

Regulators IND SEBI
Entity Types Fiduciary; Inv Co
Reference Cir SEBI/HO/IMD/IMD-PoD-1/P/CIR/2024/144, 10/22/2024
Functions Compliance; HR; Legal; Operations; Privacy; Reporting; Risk; Trade Reporting
Countries India
Category
State
Products Derivatives; Fixed Income; Fund Mgt; Mutual Funds; Securities
Regions AP
Rule Type Final
Rule Date 10/22/2024
Effective Date 11/1/2024
Rule Id 230780
Linked to Rule :90258
Reg. Last Update 10/22/2024
Report Section International

Last substantive update on 10/25/2024