Institutional mechanism by Asset Management Companies for identification and deterrence of potential market abuse including front-running and fraudulent transactions in securities

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..... panies/ Board of Trustees of Mutual Funds Association of Mutual Funds in India (AMFI) All Recognized Stock Exchanges All Recognized Depositories Madam/ Sir, Subject: Institutional mechanism by Asset Management Companies for identification and deterrence of potential market abuse including front-running and fraudulent transactions in securities 1. In order to address instances of market abuse .....

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..... buse including front-running and fraudulent transactions in securities. This mechanism shall consist of enhanced surveillance systems, internal control procedures, and escalation processes such that the overall mechanism is able to identify, monitor and address specific types of misconduct, including front running, insider trading, misuse of sensitive information etc. The mechanism shall ensure th .....

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..... intain and monitor entry logs to the AMCs' premises. 3.4. Standard operating procedures: 3.4.1. The AMCs shall formulate written policies and procedures for conducting examination and taking action in case of potential market abuse including front-running and fraudulent transactions in securities by its employees and connected entities. 3.4.2. Such policies/procedures shall be approved by AMCs' .....

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..... rvals. 4. Trade related information from exchanges: 4.1. For effective functioning of the institutional mechanism, the stock exchanges and depositories shall develop systems, in consultation with AMFI, to enable data sharing with AMCs. 5. Reporting to SEBI - In reference to alerts generated by AMCs as mentioned under para 3.2 above, AMCs shall report all examined alerts to SEBI along with actio .....

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..... ations 1996 to protect the interest of investors in securities and to promote the development of, and to regulate the securities market. 8. This circular is available at www.sebi.gov.in under the link "Legal →Circulars". Yours faithfully, Peter Mardi Deputy General Manager Investment Management Department +91-22-26449233 [email protected]
Circular, Trade Notice, Public Notice, In .....

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