Under the new rules, SEBI has imposed various trading restrictions on the employees, trustees and board members of the mutual fund company. At the same time, this restriction will also be applicable to those who have any information about the company and that can affect the net value of the company, the assets and the interest of the unit holders.
Mumbai . Markets regulator Sebi (Securities and Exchange Board of India) has issued new trading guidelines for employees, trustees and board members of asset management companies (AMCs) and mutual funds. SEBI has issued a circular in this regard. SEBI has prohibited the purchase and sale of overnight units of those mutual fund schemes, for which no information has been disclosed to the unitholders so far.
Under the new rules, various types of trading restrictions have been imposed on the employees, trustees and board members of the mutual fund company. At the same time, this restriction will also be applicable to those who have any information about the company and that can affect the net value of the company, the assets and the interest of the unit holders.
Access person
market regulator SEBI has also created a category for this. Access persons have been mentioned in this category, whose trading in mutual funds will be prohibited. Access persons include the head of the asset management company, executive directors, chief investment officers, chief risk officers and other C-suite executives, fund managers, dealers, research analysts, operations department employees, compliance officers and heads of departments .
They will also not be able to trade in mutual funds
- According to the Mint news, SEBI has told that non-executive directors, trustees of the company or any such trustee who has knowledge of non-public information and can influence the interests. Such people have also been kept in the list of access persons. This means that they will also not be able to trade in mutual funds.
- The guidelines include transactions for the purchase or sale of any securities such as shares, debentures, bonds, warrants, derivatives and units of schemes initiated by mutual funds/AMCs
- SEBI in 2016 barred employees from making profit from the purchase and sale of any security within 30 days from the date of their personal transactions. Some relaxation has also been given to the access person in the new circulation. This exemption can now be given by a compliance officer to an access person twice in a financial year. During this time they can only sell the security.
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