Employees of mutual funds can now participate in private placement of equity without obtaining prior permission of their compliance officer.
However, employees have to ensure that such an investment should not affect mutual fund investors of their company. In addition, employees have to disclose about their participation in private placement of equity to the compliance officers of AMCs.
A private placement is where a company issues shares to a certain group of investors and is not open for the general public.
Further, MF employees and trustees can invest in discretionary PMS. In this regards, AMFI is expected to issue necessary guidelines in consultation with SEBI.
In discretionary PMS, portfolio manager manages funds and executes transaction on behalf of clients without taking their prior permission.
Another key development was revision of scope of key personnel of AMCs. SEBI has included investor relation officers, head of other departments and dealers among others in the list of key personnel of AMCs.
Here is the list of key employees of AMCs
- Chief Executive Officer (CEO)
- Chief Investment Officer (CIO)
- Sales Head
- Compliance Officers
- Chief Operating Officer (COO)
- Chief Risk Officer (CRO)
- Chief Information Security Officer (CISO)
- Fund Manager(s)
- Investor Relation Officer(s) (IRO)
- Heads of other departments
- Dealer(s) of the AMC
- Such other persons as deemed fit and identified as such by the AMC and the Trustees
SEBI norms say that AMCs have to disclose compensation structure of these officials every year.
