Begin typing your search...

Mulling over AMC institutional mechanism

Extends the timeline to June 8 for submitting public comments

Sebi
X

Sebi cancels MMTC license

New Delhi: Sebi on Thursday extended the deadline to June 8 for submitting public comments on a proposal that seeks asset management companies (AMCs) to set up an institutional mechanism for the deterrence of possible market abuse and fraudulent transactions.

Earlier, the last date of submitting public comments was June 3 and now it has been decided to extend the timeline to June 8, the Securities and Exchange Board of India (Sebi) said. The markets regulator, in its consultation paper issued last month, proposed that AMCs should put in place robust surveillance systems and internal control procedures, to deter possible misconduct by employees or other entities which may have information relating to fund management or investments of mutual fund schemes.

It further suggested that senior management of AMCs should be responsible to ensure that an institutional mechanism is put in place to detect and report possible misconduct by its employees, dealers, stock brokers or any other connected entities. Also, AMCs should have appropriate escalation and reporting mechanisms for possible market abuse and fraudulent transactions in securities related to the AMCs' transactions.

Bizz Buzz
Next Story
Share it