InvestorQ : What are the trading restrictions that SEBI has put on mutual fund employees?
indhumathi Sayani made post

What are the trading restrictions that SEBI has put on mutual fund employees?

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2 months ago
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SEBI has modified the norms and regulations governing the investments in securities by employees, board members and trustees of mutual fund asset management companies or AMCs. To begin with, SEBI has expanded the definition of access persons which will now include non-executive directors of the AMC and trustees also, as long as they have access to private information about prices or about net asset values or NAVs.

This will form part of the Code of Conduct for employees that has to be adopted by all the AMCs and the trustees. Currently, reporting is only required for equities and not for mutual fund units. Going ahead, access persons will also have to report any purchase or sale of mutual fund units. These rules have come after allegations of insider exit in the case of Templeton debt funds by the top brass. These rules will be effective from December 2021.

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