The Securities and Exchange Board of India has issued the Securities and Exchange Board of India (Mutual Funds) (Second Amendment) Regulations on 29th October, 2020. The provisions governing asset management companies is amended to provide that an asset management company may become a proprietary trading member for carrying out trades in the debt segment of the recognized stock exchanges, on behalf of its mutual fund schemes and may also become a self-clearing member of the recognized clearing corporations to clear and settle trades in the debt segment on behalf of its mutual fund schemes.
Further the Chief Executive Officer is directed to ensure that the Asset Management Company has adequate systems in place to ensure that the Code of Conduct for Fund Managers and Dealers specified in PART – B of the Fifth Schedule of these regulations are adhered to in letter and spirit. Any breach of the said Code of Conduct shall be brought to the attention of the Board of Directors of the Asset Management Company and Trustees.
The Fund Managers shall abide by the Code of Conduct for Fund Managers and Dealers specified in PART – B of the Fifth Schedule of Securities and Exchange Board of India (Mutual Funds) Regulations, 1996 and submit a quarterly self-certification to the Trustees that they have complied with the said code of conduct or list exceptions, if any.
