Fund houses will be required to reveal the current investments made by their trustees, designated AMCs, and members of their immediate family.
Mutual funds are now subject to SEBI’s Prohibition of Insider Trading (PIT) regulations. As a result, starting on November 1, 2024, fund houses will be required to report on a quarterly basis the current investments of their designated AMCs, trustees, and members of their immediate family.
Additionally, the relevant party must notify the AMC compliance officer within two business days of the transaction date if they invest more than Rs. 15 lakh in their own mutual funds each quarter. The market watchdog did clarify, though, that there would be no limitations on MF unit redemptions or investments.
-SEBI (Prohibition of insider trading) Regulations, 2024
What insider trading rules does SEBI have?
It is always prohibited for a designated individual or their close connections to engage in inside trading. A Designated Person who purchases or sells any quantity of the company’s stocks is prohibited by SEBI regulations from engaging in a subsequent transaction within six months of the date of the transaction.
SEBI advised fund house personnel not to profit from the sale or acquisition of any security for 30 calendar days following the date of their individual transaction.
Read Also: SEBI has updated the Insider Trading Norms to deter front running in capital markets
According to SEBI, if it is carried out, the employee must explain the situation to the trustees and the AMC’s compliance officer during the review process. Fund houses must report the current investments made by their designated AMCs, trustees, and members of their immediate family.
