Jan 23, 2025

Inclusion of Mutual Fund Units in Insider Trading Regulations

SEBI, by way of a Circular dated October 22, 2024 (‘Circular’), enforced the amendment to the Insider Trading Regulations. The Circular required, inter alia, Asset Management Companies (‘AMCs’) to disclose: (i) the holdings of the designated persons of the AMCs, trustees and their immediate relatives on a quarterly basis from November 1, 2024 whereby the holdings as on October, 2024 were required to be disclosed on the platform of the stock exchanges by November 15, 2024 and thereafter, for all subsequent calendar quarters AMCs must provide the information in a format specified in the Circular within 10 calendar days from the end of the quarter; (ii) details of all the transactions in the units of its own mutual funds (‘MF’) above the threshold amount which aggregates to a value in excess of INR 15 lakhs (approx. USD 18,000) in one transaction or a series of transactions over any calendar quarter, per permanent account number (‘PAN’), across all schemes excluding the exempted schemes, executed by the designated persons of AMC, trustees and their immediate relatives to be reported by the concerned person to the compliance officer of AMC within two business days from the date of transaction; and (iii) various other disclosures that were required under various provisions of the Insider Trading Regulations. Furthermore, amendments were made to the Master Circular for MFs dated June 27, 2024 (‘Master Circular’) to harmonise the framework of investment/trading restriction in securities by employees of the AMCs and trustees as prescribed in the Master Circular.

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