India's Sebi updates mutual fund regulations to combat market abuse practices; establishes whistleblower mechanism, new rules effective Nov 1.
India's capital markets regulator, Sebi, has updated mutual fund regulations to strengthen measures against market abuse practices like front-running and insider trading. AMCs must establish an institutional mechanism to detect and prevent these activities, with the AMC management responsible for its effectiveness. Sebi has also directed AMCs to implement a whistle-blower mechanism for reporting suspected fraudulent, unfair, or unethical practices, in response to recent cases involving Axis AMC and LIC. The new rules will be enforced from November 1.
August 05, 2024
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