SEBI decided to review the circular and partially modify the provisions of the circular dated November 17, 2016 on the basis of the representations received from the industry participants & AMFI and recommendations of Mutual Fund Advisory Committee. The guidelines were issued to all mutual funds, AMCs, Trustee Companies / Boards of Trustees of Mutual Funds enumerating the minimum requirements that have to be followed to ensure complaince and report any violations on continuous basis by them.

1. RESEARCH BULLETIN
Beacon Trusteeship Limited
SECURITIES EXCHANGE BOARD OF INDIA
Investment/ trading in securities by employees and Board members of
AMC(s) and Trustees of Mutual Funds
 SEBI on 28th October 2021 specified the norms for investment/ trading in
securities by employees of AMC(s) and Trustees of Mutual Funds and
consolidated the provisions for the same.
 This circular partially modifies the provision of the circular dated November 17,
2016 regarding the objectives of the guidelines now any access persons are not
allowed to take undue advantage of any sensitive information about company
or any securities.
 Employees are refrain from profiting from the purchase and sale of any security
within a period of 30 calendar days from the date of their personal transaction, if
In case done then should be answerable to the compliance officer, Board of the
AMC and the Trustees at the time of review.
 Provisions for “cooling off” period are now relaxed for access persons with
respect to certain conditions related to sale of securities.
 Access persons and employees do not require prior clearance of the Compliance
Officer for purchase or sale of units of Mutual Fund schemes but details of such
transactions except schemes should be reported to the Compliance Officer
within 7 calendar days from the date of transaction.
 Purchase or sell or repurchase or redeem units of any scheme, including
overnight scheme are prohibited for Employees of AMC(s), Board members of
AMC(s) and Board members of Trustees, including Access Persons where
information is not yet communicated to the unit holders and can impact the NAV
or their interest.
 The Board of the AMC and the Trustees are require to review the compliance of
the Guidelines in their periodic meetings existing procedures and recommend
changes in procedures based on the AMC’s experience, industry practices and/or
developments in applicable laws and regulations.
 All the provisions of this circular shall be applicable with effect from December
01, 2021
29th Oct 2021