The Securities and Exchange Board of India (SEBI) on October 22, 2024, issued a circular regarding the inclusion of Mutual Fund units in the SEBI (Prohibition of Insider Trading) Regulations, 2015.
To strengthen the regulatory framework in relation to the prohibition of insider trading in units of mutual funds, vide notification dated November 24, 2022, mutual funds units were included under the SEBI (Prohibition of Insider Trading) Regulations, 2015. The amendments notified through the notification dated November 24, 2022, shall be applicable from November 01, 2024.
A working group consisting of representatives from AMCs, AMFI, Stock Exchanges, RTAs and Depositories was constituted which provided its recommendations on implementation of the abovementioned amendments. After considering the recommendations of the working group, the following has been decided:
• In terms of Regulation 5 (E)(1) of PIT Regulations, AMCs shall disclose the details of the holdings of Designated Persons of AMCs, trustees and their immediate relatives on aggregate basis from November 01, 2024 on quarterly basis. The holdings as on October 31, 2024 shall be disclosed on the platform of the Stock Exchanges by November 15, 2024. Thereafter, for all subsequent calendar quarters AMCs shall provide the information within 10 calendar days from the end of the quarter. Further, the holdings shall be disclosed in the format specified at Annexure A.
• In terms of Regulation 5 (E)(3) and 5 (E)(4)of PIT Regulations, the transactions reported under Regulation 5 (E)(2) of PIT Regulations shall be disclosed in the format specified at Annexure B.
• In terms of Clause 12 of Schedule B1 and Clause 11A of Schedule C of PIT Regulations, the observed violations of PIT Regulations shall be disclosed in the format specified at Annexure C.
[Circular No. SEBI/HO/IMD/IMD-PoD-1/P/CIR/2024/144]
