MFs may face compliance woes if scheme deals seen as insider trading

July 12, 2022

The opinion of our partner – Mr. Makarand Joshi about SEBI’s Proposal to bring buying and selling of mutual fund schemes under the Prohibition of Insider Trading Regulation (PIT)
 
Insider trading refers generally to buying or selling a security, in breach of fiduciary duty on the basis of material, non-public information about a security.

Covering unlisted MF units under the PIT where there is no price-discovery mechanism on the stock exchanges is like challenging the fundamentals of PIT Regulation.

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