Investment trading in securities by employees of AMC(s) and Trustees of Mutual Funds

CIRCULAR

SEBI/HO/IMD/DF2/CIR/P/2016/124

November 17, 2016

All Mutual Funds/Asset Management Companies (AMCs)/

Trustee Companies/Boards of Trustees of Mutual Funds

Sir/ Madam,

Subject: Investment/trading in securities by employees of AMC(s) and Trustees of Mutual Funds

A. Please refer to SEBI circulars dated May 08, 2001, June 20, 2002, July 11, 2003, December 15, 2009 and May 22, 2014, on the captioned subject. With an objective to bring about alignment of these SEBI circulars providing guidelines for Investment/Trading in Securities by employees of AMC(s) and Trustees with the principles laid down in SEBI (Prohibition of Insider Trading) Regulations, 2015, and to remove difficulty in the implementation of the guidelines, the following provisions stand modified:

1. Clause 1.1 of SEBI Circular dated May 08, 2001 on investments covered under these guidelines shall read as follows:

“These Guidelines cover transactions for purchase or sale of any securities such as shares, debentures, bonds, warrants, derivatives and units of schemes floated by Mutual Funds / AMCs where the concerned persons (in terms of the applicability stated at Clause 1 of the said circular) are employed.

These Guidelines do not apply to the following investments by the employees:

i. Investments in fixed deposits with banks/financial institutions/companies, life insurance policies, provident funds (including public provident fund) or Investment in savings schemes such as National Savings Certificates, National Savings Schemes, Kisan Vikas Patra, or any other similar investment.

ii. Investments of a non-financial nature such as gold etc, where there is no likely conflict between the Mutual Fund’s interest and the employees’ interest.

 iii. Investments in government securities, money market instruments, money market mutual fund schemes, liquid schemes and schemes floated by other Mutual Funds/ AMCs.”

Please refer to the attachede file for details