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SEBI has put mutual funds under the Prohibition of Insider Trading (PIT) norms from today. With this, fund houses will have to disclose existing investments of their designated persons of AMCs, trustees and their immediate family members from November 1, 2024 on quarterly basis.
Further, the investment amount exceeding Rs.15 lakh per quarter in own mutual funds has to be reported by the concerned person to the compliance officer of AMC within 2 business days from the date of transaction.
However, the market regulator clarified that there will be no restriction on investment and redemption of MF units.
For employees of fund houses, SEBI said that all employees should refrain from profiting from sale and purchase of any security within 30 calendar days from the date of their personal transaction. However, in cases where it is done, the employee has to provide an explanation to the compliance officer of the AMC and the trustees at the time of review, said SEBI.
