Brief Overview:
Reporting under PIT Regulations extended to Asset Management Companies (“AMCs”), trustees of Mutual Funds, designated persons (“DPs”) and immediate relatives of DPs.
Technical Details:
1) Disclosure Requirements
(a) AMC to disclose on quarterly basis to stock exchange (“SE”), details of holdings in the units of its Mutual Fund scheme of DPs of AMC’s and Trustee and their immediate relatives, within 10 days from the end of every quarter.
(b) DPs of AMC’s and Trustee and their immediate relatives to disclose to the compliance officer of the AMC, details of transactions in units of own mutual fund, within 2 (two) days of the transaction. This could be in a single transaction or a series of transactions aggregating to more than INR 15 Lakhs in a calendar quarter, per PAN across all schemes (other than exempted schemes).
2) Amendments to Master Circular for Mutual Funds
(a) Trustees, AMCs and their employees and directors to strictly follow the SEBI (Prohibition of Insider Trading) Regulations, 2015 (“PIT Regulations”) for Mutual Fund Units.
(b) Provisions on restrictions on dealing with investment in Mutual Fund Units have been deleted given they are now separately covered under the PIT Regulations to avoid overlapping.
JC takeaway:
This move by SEBI is aimed at making the disclosure and compliance norms for DPs more stringent. Given the impending expansion of scope of ‘immediate relatives’, one wonders whether employment at Mutual Funds will become less attractive.
For further details, please see:
SEBI | Inclusion of Mutual Fund units in PIT Regulations
For any queries / clarifications, please feel free to ping us and we will be happy to chat:
