Market regulator Sebi on Thursday came out with a new framework for investment and trading in securities by the employees of asset management companies (AMCs) and trustees of mutual funds.
The framework will help in avoiding any actual or potential conflict of interest or any abuse of an individual’s position of trust and responsibility. In a circular, Sebi said it has tweaked the guidelines pertaining to “access person” and “cooling off" period of such a person in respect of investments made by them in securities traded through the secondary markets.
Access Person means the head of the AMC (CEO/managing director/president), 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.
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 Thursday.
