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SEBI Chairperson, Madhabi Puri Buch has asked AMFI to form an ethics committee that will act against individuals who do wrong things like front running, mis-selling and misuse of information.
Madhabi was speaking at an event organised during AMFI's new office inauguration at BKC.
Madhabi also said that SEBI’s proposed guidelines on putting in place an institutional mechanism to deter possible market abuse and fraudulent transactions will reduce instances of individual misdemeanour.
Last month, SEBI has issued a consultation paper in which it has proposed that AMCs CEOs and senior management personnel will be held responsible if their AMC is found doing any misconduct and mis selling.
The market regulator has also asked AMCs to put in place a surveillance system to check instances of front running, insider trading, mis selling of products and misuse of information by the AMC, its employees or distributors.
