The Securities and Exchange Board of India (SEBI) has updated mutual fund regulations, mandating Asset Management Companies (AMCs) to establish mechanisms to prevent front-running and insider trading. Effective November 1, AMCs must implement systems to detect and deter market abuse and ensure compliance, with management accountable for these measures. Additionally, AMCs are required to set up whistle-blower policies to report unethical practices confidentially. This move follows recent SEBI actions against Axis AMC and LIC for front-running. For investors, this enhances market integrity and accountability in mutual fund operations.
SEBI’s New Mutual Fund Rules to Combat Front-Running and Insider Trading
