In a move to enforce discipline and check front running in mutual funds, Sebi has asked mutual fund houses to install recording facilities in dealing rooms and disallow traders from using their personal mobile phones. Sebi, in a letter to mutual fund players, has directed that all dealing records be preserved for eight years. Further, Sebi has asked asset management companies to ensure that the terms of reference of the review of internal auditors are submitted to the board of trustees. Moreover, Sebi wants that AMCs ensure that the recordings are checked periodically by designated executives.
IDBI Mutual Fund MD&CEO Krishnamurthy Vijayan said, "Most of the funds have already been following these practices. Perhaps the regular may have found a couple of instances where this was not happening which is probably why the directive has been issued. " These directives from Sebi come in the wake of the regulator unearthing a massive front running trade involving an employee of HDFC AMC and three other clients during April to July 2007.
Source: http://www.financialexpress.com/news/sebi-for-recorders-to-check-front-running-in-mfs/649951/
--
___________________________________________________________________________________
'I made my money by selling too soon.'
Website: http://indianmutualfund.co.cc/
Blog:http://indianmutualfund.wordpress.com/
___________________________________________________________________________________
No comments:
Post a Comment