Capital markets regulator SEBI has made it mandatory for asset management companies (AMCs) to disclose details of the holdings of designated persons of AMCs, trustees and their immediate relatives on aggregate basis from November 1 every quarter.
The holdings as on October 31 will be disclosed on the platform of the stock exchanges by November 15. Thereafter, for all subsequent calendar quarters, AMCs will provide the information within 10 calendar days from the end of the quarter.
In order to strengthen the regulatory framework in relation to prohibition of insider trading in units of mutual funds (MFs), SEBI has notified amended Prohibition of Insider Trading (PIT) Regulations, which will come into force from November 1.
In order to streamline the implementation of PIT regulation, a working group consisting of representatives from AMCs, AMFI, stock exchanges, RTAs and Depositories was constituted, which provided its recommendations on implementation of the new amendments.
New norms
AMCs have to disclose details of all the transactions in the units of its own MFs executed by the designated persons, trustees and their immediate relatives above the threshold limit of over ₹15 lakh, in one or a series of transactions over any calendar quarter, per PAN across all schemes excluding the exempted schemes. The AMC’s compliance officer of AMC have to ensure on the disclosure in two business days from the date of transaction.
All employees have to refrain from profiting from the purchase and sale of any security within a period of 30 calendar days from the date of their personal transaction, said SEBI.
However, in cases of such deals being executed within 30 days, the employee has to provide a suitable explanation to the compliance officer who has to report the same to the board of the AMC and the trustees at the time of review, said SEBI.