After consulting with members and industry entities, the market regulator’s November 2022 announcement regarding the inclusion of MF units under PIT is currently going into force.
On Tuesday, the Securities and Exchange Board of India (Sebi) announced that, as of November 1, 2024, mutual fund (MF) units will be subject to the Prohibition of Insider Trading (PIT) Regulations. After consulting with members and industry entities, the market regulator’s November 2022 announcement regarding the inclusion of MF units under PIT is currently going into force.
According to Sebi, asset management companies (AMCs) would be required to report on a quarterly basis the holdings of trustees, designated AMC personnel, and their close family members. Additionally, the market watchdog has required that a designated individual notify the compliance officer within two business days of any transactions in their own MFs above Rs 15 lakh in a quarter.
