Sebi board on Tuesday decided to amend norms governing mutual funds, whereby asset management companies (AMCs) need to put in place an “institutional mechanism” for identification and deterrence of potential market abuse, including front-running and fraudulent transactions in securities.
The mechanism should consist of enhanced surveillance systems, internal control procedures, and escalation processes to identify, monitor and address specific types of misconduct, including front running, insider trading, and misuse of sensitive information, Sebi said in a statement issued after the conclusion of the board meeting.
Sebi has also said that foreign funds set up at GIFT City in Gujarat state can take full investment from non-resident Indians and other Indian-origin citizens.
However, they will need to make granular disclosures about their investors if the fund holds more than 33% of its equity assets under management in a single Indian group.
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First Published: Apr 30 2024 | 6:20 PM IST