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.
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.
