SEBI circular dated December, 31.2020 has issued following directions to Asset Management Companies:
- AMCs shall use an automated Order Management System (hereinafter referred to as ‘OMS’), wherein the orders for equity and equity related instruments of each scheme shall be placed by the fund manager(s) of the respective schemes. However, a fund manager may authorize an employee of the AMC for order placement on his behalf, subject to adherence to the following: (a) The order instructions to such employee by the fund manager shall be through electronic mode i.e. either through e-mail or other electronic utility, wherein schemewise audit trail of such orders starting from the instruction of the fund manager is maintained along with time stamping of each stage of the process. (b) The employee placing the order shall be bound by the same requirements of maintaining confidentiality and the code of conduct as applicable to the fund manager in this regard i.e. in respect of order placement.
- At all points of time, the responsibility associated with order placement shall continue to vest with the fund manager.
