Nearly two years after issuing a notification, the Securities and Exchange Board of India (SEBI) on Tuesday decided to implement amendments to insider trading norms for asset management companies (AMCs), designated persons, trustees or their immediate relatives from November 1.
The regulator has asked AMCs to disclose on a quarterly basis details of the holdings of designated persons of AMCs, trustees and their immediate relatives on an aggregate basis from November 1.
“The holdings as of October 31, 2024 should be disclosed on the platform of the stock exchanges by November 1, 2024. Thereafter, for all subsequent calendar quarters, AMCs shall provide the information within 10 calendar days from the end of the quarter,” the regulator said in a circular on Tuesday.
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Further, details of all transactions in its own mutual funds units, exceeding Rs 15 lakh, in one transaction or a series of transactions over any calendar quarter per permanent account number across all schemes excluding the exempted ones, executed by the designated persons of AMC, trustees and their immediate relatives should be reported by the concerned person to the compliance officer of the AMC within two business days from the date of transaction.
The regulator said employees must avoid profiting from trading in the same security within 30 days, and if they transact, they must explain it to the compliance officer, who, in turn, will report it to the AMC board and trustees.
Framework on associations between intermediaries, unauthorised financial advisors
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SEBI on Tuesday came out with a framework on associations between market intermediaries and unauthorised financial advisors, especially with regard to specified digital platforms. This came after SEBI in August amended rules aimed at regulating associations between intermediaries like the stock exchanges, clearing corporations and depositories, and entities providing financial advices or making performance claims. The rule restrains intermediaries, their agents, or associated persons from having direct or indirect ties with any entity that provides investment advice or recommendations without being registered or permitted by SEBI or makes performance or return-related claims unless specifically authorised by the regulator to do so.
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