Sebi to introduce code of conduct for mutual fund managers, AMC officers

Markets regulator Sebi on Tuesday decided to introduce a code of conduct for mutual fund managers, including chief investment officer of asset management companies (AMCs).

In addition, AMCs have been allowed to become self clearing member, Sebi said in a statement after its board meeting.

The board after deliberation, approved the amendment of MF Regulations to introduce a code of conduct for fund managers including chief investment officers and dealers of AMC.

The chief executive officer (CEO) will be responsible to ensure that the code of conduct is followed by all such officers.

Currently, mutual fund norms require AMCs and trustees to follow a code of conduct. Also, the CEO is entrusted with several responsibilities.

It, further, permitted AMCs to become a self-clearing member of the recognised clearing corporations to clear and settle trades in the debt segment of recognised stock exchanges, on behalf of its mutual fund scheme.

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