Sebi Tightens Grip on Mutual Fund Transactions with New Compliance Rules

Securities and Exchange Board of India (Sebi) has issued new compliance rules for mutual fund transactions exceeding Rs 15 lakh, effective November 1. Transactions by designated persons, trustees, or relatives must be reported to compliance within two days. This aims to ensure transparency and prevent insider trading within asset management companies.

The Securities and Exchange Board of India (Sebi) announced new compliance rules, requiring mutual fund transactions over Rs 15 lakh by certain individuals to be reported within two days. This applies from November 1 and aims to increase transparency and reduce insider trading risks.

All asset management companies (AMCs) must disclose holdings of designated individuals and immediate relatives quarterly, beginning November 1, 2024. This aligns with Sebi's effort to boost integrity within the mutual fund sector.

The notification emphasizes that insider trading in mutual fund units is prohibited when in possession of unpublished price-sensitive information. These provisions, aimed at protecting unit holders, come into effect from November 2024.

(With inputs from agencies.)