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SEBI bars senior employees of AMCs from trading in Mutual Funds Mutual Fund
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SEBI bars senior employees of AMCs from trading in Mutual Funds

India Blooms News Service | @indiablooms | 30 Oct 2021, 12:29 am

Mumbai/IBNS: Senior employees and directors of asset management companies (AMCs) and their trustees have been prohibited by the Securities Exchange Board of India (SEBI) from buying or selling mutual fund units when they are in the position to gain access to any non-public information, such as winding up of schemes, media reports said.

The guidelines come after SEBI observed that Franklin Templeton's senior officials, directors of the asset manager and its trustee company redeemed their investments ahead of the winding up of the six debt funds.

The senior executives should refrain from purchase or sale of mutual fund units, where any information available to the mutual fund--which could materially impact the NAV (net asset value) or interest of unitholders-- is not yet communicated to the unitholders, the regulator said, according to Economic Times report.

It said scenarios such as a change in the investment objectives of the concerned mutual fund scheme, restrictions on redemptions, winding up of schemes, material change in the liquidity position and default in the underlying securities is material to the concerned mutual fund scheme, it added.

For personal investment transactions, prior approval should be obtained by senior executives, the regulator said.

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