TMI BlogMinimum Standards of Code of Conduct for Mutual Funds to regulate, monitor and report trading by the Designated Persons in the units of own mutual fund schemesX X X X Extracts X X X X X X X X Extracts X X X X ..... y as may be stipulated by the board of directors, but in any case not less than once in a year. 2. The information shall be handled within the organisation on a need-to-know basis and no unpublished price sensitive information shall be communicated to any person except in furtherance of legitimate purpose, performance of duties or discharge of legal obligations. The code of conduct shall contain norms for appropriate Chinese Walls 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 internal code of conduct governing dealings in units of the mutual fund. 4. (1)Designated persons may deal in t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ystematic transactions shall be subject to pre-clearance by the compliance officer, if the value of the proposed trades is above such thresholds (separate thresholds for systematic transactions and lumpsum payments) as the Board of AMCs may stipulate: Provided that for transactions in units by the Designated Persons pursuant to the mandatory requirement under 'Alignment of interest of Key Employees ('Designated Employees') of asset management companies with the unit holders of the mutual fund schemes' or otherwise shall be as specified by the Board in this regard: Provided further that the requirement of pre-clearance of trades by Designated Persons shall not apply for trading in Overnight Schemes, Index funds and Exch ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ablished by the Board under the Act: Provided that trading restrictions imposed for contra trade shall not be applicable for Overnight Schemes. 10. The code of conduct shall also stipulate such formats as the board of directors deem necessary for making applications for reporting of trades executed and for reporting level of holdings in units of mutual funds at such intervals as may be determined as being necessary to monitor compliance with these regulations. 11. The code of conduct shall stipulate the internal sanctions and disciplinary actions, including wage freeze, suspension, recovery, etc., that may be imposed by the asset management company for the contravention of the code of conduct. Any amount collected under this clause ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
