The Securities and Exchange Board of India on 28th October 2021, based on the representations received from the industry participants & AMFI and recommendations of Mutual Fund Advisory Committee, it has decided to review the Guidelines for Investment and/or Trading in Securities by Employees of AMC(s) and Trustees.
As per the revised norms, SEBI has created a new category called as “Assess person” in order to ensure that the employees of AMCs, its board members, and board members of trustees do not take undue advantage of any sensitive information that they may have about any company or its securities or the AMC’s schemes or its units.
Access person for the purpose of these guidelines shall mean the Head of the AMC (designated as CEO/Managing Director/President or by other name), Executive Directors, Chief Investment Officer, Chief Risk Officer, Chief Operation Officer, Chief Information Security Officer, Fund Managers, Dealers, Research Analysts, all employees in the Fund Operations Department, Compliance Officer and Heads of all divisions and/or departments or any other employee as decided by the AMC(s) and/or Trustees.
Further, all employees will refrain from profiting from the purchase and sale or sale and purchase of any security within a period of 30 calendar days from the date of their personal transaction. However, in cases where it is done, the employee shall provide a suitable explanation to the Compliance Officer, which shall be reported to the Board of the AMC and the Trustees at the time of review.
The new framework will be applicable from December 1, 2021 while those related to refraining from profiting from the purchase and sale of any security within a period of 30 calendar days will become effective from 28th October 2021.
