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SEBI Rules and Regulations for Trading: The Securities and Exchange Board of India (SEBI) has taken a big action in the country today. SEBI has issued guidelines to bring the purchase and sale of Mutual Funds units under the ambit of insider trading rules. At present, the Insider Trading Rules are applicable in the case of securities of listed companies. Apart from this, these rules have been applied to the companies proposed to be listed.
what is the reason for the change
Let us tell you that till now Mutual Fund Units were kept out of the definition of securities. SEBI’s latest decision comes after the Franklin Templeton case, in which some officials of the fund house are alleged to have encashed their stake in 6 loan schemes even before they were banned.
what sebi said
News Reels
SEBI said in a notification that, “No insider who is aware of any unpublished sensitive information shall transact in the units of any such scheme of the mutual fund, the Net Asset Value of which is based on that information.” Cause can be effect.
what is the new rule
Under the new rules, Asset Management Companies (AMCs) will have to disclose the shareholding of AMCs, trustees and their close relatives in their mutual fund units. Also, the compliance officer of the AMC will fix the closing period during which the nominee cannot deal in units of the mutual fund. To make this effective, SEBI has amended the insider trading rules, which have now become effective.
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