More Stories

Informist, Monday, Aug 5, 2024

 

MUMBAI – The Securities and Exchange Board of India has asked asset management companies to put in place a mechanism to identify and deter potential market abuse, 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, among others," the regulator said in a circular today. 

 

The chief executive officer or the managing director and the chief compliance officer of the asset management company will be responsible and accountable for implementing the mechanism. They need to ensure that the system can generate and process alerts of market abuse in a timely manner, the circular said.

 

It also said that for the effective functioning of the institutional mechanism, the stock exchanges and depositories will need to develop systems, in consultation with the Association of Mutual Funds in India, to enable data sharing with asset management companies.

 

The AMFI, in consultation with SEBI, will come out with detailed guidelines within the next 15 days, the circular said.  End

 

Reported by Kshipra Petkar

Edited by Saji George Titus

 

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

 

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.

 

Informist Media Tel +91 (22) 6985-4000

Send comments to feedback@informistmedia.com

 

© Informist Media Pvt. Ltd. 2024. All rights reserved.