TMI BlogMinimum Standards for Code of Conduct for Intermediaries and Fiduciaries to Regulate, Monitor and Report Trading by Designated PersonsX X X X Extracts X X X X X X X X Extracts X X X X ..... or to the Chairman of the board of directors or head(s) of the organisation at such frequency as may be stipulated by the board of directors or head(s) of the organization but not less than once in a year. 2. All information shall be handled within the organisation on a need-to-know basis and no unpublished price sensitive information shall be communicated to any person except in furtherance of legitimate purposes, performance of duties or discharge of legal obligations. The code of conduct shall contain norms for appropriate Chinese Wall procedures, and processes for permitting any designated person to cross the wall . 3. Designated persons and immediate relatives of designated persons in the organisation shall be governed by an in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of dealing in the units of mutual funds, the code of conduct shall specify the period, which in any event shall not be less than two months, within which a Designated Person who is a connected person of the mutual fund/asset management company/trustees and is permitted to trade in the units of such mutual fund, shall not execute a contra trade. ] The compliance officer may be empowered to grant relaxation from strict application of such restriction for reasons to be recorded in writing provided that such relaxation does not violate these regulations. Should a contra trade be executed, inadvertently or otherwise, in violation of such a restriction, the profits from such trade shall be liable to be disgorged for remittance to the Board for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ns, such intermediary or fiduciary shall 7 [ promptly inform the stock exchange(s) where the concerned securities are traded, in such form and such manner as may be specified by the Board from time to time ] . 9 [ 11A. In case of dealing in the units of mutual funds, the code of conduct shall specify that in case it is observed by the intermediary or fiduciary required to formulate a code of conduct under sub-regulation (2) of regulation 5F, that there has been a violation of these regulations, such intermediary or fiduciary shall promptly inform the same to the stock exchange(s) in such form and such manner as may be specified by the Board from time to time. ] 12. All designated persons shall be required to disclose name and Per ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s 3. Substituted vide SEBI/LAD-NRO/GN/2019/23 before it was read as studied 4. Inserted vide SEBI/LAD-NRO/GN/2019/23 5. Substituted vide SEBI/LAD-NRO/GN/2019/23 before it was read as of such payer s annual income 6. Substituted vide Notification No. SEBI/LAD-NRO/GN/2020/23 dated 17-07-2020 before it was read as 10. Without prejudice to the power of the Board under the Act, the code of conduct shall stipulate the sanctions and disciplinary actions, including wage freeze, suspension, recovery, clawback etc., that may be imposed, by the intermediary or fiduciary required to formulate a code of conduct under sub-regulation (1) and sub-regulation (2) of regulation 9, for the contravention of the code of conduct. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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