The SIT strengthens the disclosure of the PIT for persons designated by MF

Capital markets regulator SEBI has made it mandatory for asset management companies (AMCs) to disclose details of assets of designated persons of AMCs, trustees and their immediate relatives on an aggregate basis from November 1 of each quarter.

Holdings as of October 31 will be published on the stock exchange platform by November 15. Thereafter, for all subsequent calendar quarters, AMCs will provide the information within 10 calendar days of the end of the quarter.

In order to strengthen the regulatory framework relating to prohibition of insider trading in units of mutual funds (mutual funds), SEBI has notified an amendment to the Prohibition of Insider Trading (PIT) Regulations, which will come into effective November 1.

In order to streamline the implementation of the PIT regulations, a working group comprising representatives of AMCs, AMFI, stock exchanges, RTAs and depositories was constituted, which provided its recommendations on the implementation of the new changes.

New standards

AMCs must disclose details of all transactions in shares of their own MFs executed by the nominees, trustees and their immediate relatives above the threshold of more than ₹15 lakh, in one or a series of transactions during of a calendar quarter, per PAN on all schemes excluding exempt schemes. The AMC Compliance Officer must ensure disclosure within two business days from the date of the transaction.

All employees must 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, SEBI said.

However, in the event that such transactions are executed within 30 days, the employee must provide an appropriate explanation to the Compliance Officer who must report the same to the AMC Board and Directors at the time of execution. examination, SEBI said.