Inclusion of Mutual Fund units in the SEBI (Prohibition of Insider Trading) Regulations, 2015
Summary
This circular mandates the inclusion of mutual fund units under the SEBI Prohibition of Insider Trading Regulations effective November 1, 2024. It establishes specific disclosure and reporting obligations for Asset Management Companies regarding holdings and transactions by Designated Persons. Additionally, it modifies the Master Circular for Mutual Funds to harmonize investment restrictions with the amended PIT Regulations.
Text
Mutual fund units were included under the SEBI (Prohibition of Insider Trading) Regulations, 2015 via notification dated November 24, 2022, applicable from November 01, 2024.
AMCs shall disclose aggregate holdings of Designated Persons, trustees, and immediate relatives on a quarterly basis starting November 1, 2024, using the format in Annexure A.
Designated Persons must report transactions in their own mutual fund units exceeding INR 15 Lakhs per PAN per calendar quarter to the AMC Compliance Officer within two business days.
Transactions reported under Regulation 5(E)(2) shall be disclosed in the format specified at Annexure B.
Observed violations of PIT Regulations shall be disclosed in the format specified at Annexure C.
Clause 6.6 of the Master Circular is not applicable for investments and redemption of mutual fund units; PIT Regulations shall be followed strictly.
Guidelines covering purchase or sale of securities such as shares, debentents, bonds, warrants, derivatives are modified.
Investments in units of schemes floated by mutual funds/AMCs where concerned persons are employed are inserted as a new clause.
Employees profiting from trading within 30 calendar days must provide a suitable explanation to the Compliance Officer, reported to the Board and Trustees.
Clause 6.6.4 of the Master Circular stands deleted.
The circular shall be applicable from November 1, 2024.
This circular is issued under Section 11(1) of the SEBI Act, 1992 read with Regulation 5(E), 5(F)(1) and 5(F)(2) of PIT Regulations.
Source: SecMarx — Inclusion of Mutual Fund units in the SEBI (Prohibition of Insider Trading) Regulations, 2015. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.