Investment/trading in securities by employees of Asset Management Companies and Mutual Fund Trustee Companies - SEBI - SEBI/IMD/CIR No. 7/13391/03

Circulars GENERAL MANAGER INVESTMENT MANAGEMENT DEPARTMENT SEBI/IMD/CIR No. 7/13391/03 July 11, 2003 All Mutual Funds registered with SEBI Association of Mutual Funds in India (AMFI) Dear Sirs, Investment/trading in securities by employees of Asset Management Companies and Mutual Fund Trustee Companies As you are aware, SEBI had earlier issued a set of guidelines on the captioned subject vide Circular No. MFD/CIR No.4/216/2001 dated May 08, 2001. Subsequently SEBI (Insider Trading) Regulations were also notified. With an objective to bring about uniformity in the requirements and to remove difficulty in the implementation of guidelines, the following clarifications are being issued after consultation with AMFI. 1. Regarding clause 1.4, the approval from the compliance officer for carrying out a transaction of sale or purchase of a security by the access person shall be valid for one week to be in tandem with SEBI (Insider Trading) Regulations instead of the existing requirement of 10 calendar days. 2 The requirement of employees to refrain from profiting from the purchase and sale or sale and purchase of any security within a period of 60 calendar days from the date of personal transaction as stipulated in clause 1.6 is now reduced to 30 days to bring it in line with the requirements prescribed under SEBI (Insider Trading) Regulations. The above clarifications are being issued in accordance with Regulation 77 of the SEBI (Mutual Funds) Regulations, 1996. Yours faithfully, SURESH GUPTA