Purchasing and Selling Mutual Fund Units Now Subject to Insider Trading Regulations by SEBI

The units of mutual funds are specifically excluded from the definition of securities under the legislation . Sebi updated insider trading rules that became effective on November 24 .

New Delhi: The Securities and Exchange Board of India (Sebi), a capital markets regulator, has amended its regulations to include insider trading terms in the purchase and selling of mutual fund units, as defined by insider trading laws.When in possession of Unpublished Price Sensitive Information (UPSI), the rules are no longer applicable.The units of mutual funds are specifically excluded from the definition of securities under the legislation, according to Sebi.Among other things, the stock exchange board of India (Sebi) has established a minimum code of conduct for designated individuals, which can have a material effect on the net asset value of a scheme, trustees, and their immediate relatives, within two business days of the transaction, according to Sebi.

Sebi updated insider trading rules that became effective on November 24.

.
.
.
.