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<h1>SEBI Amends Mutual Funds Regulations: CEOs to Ensure Code Compliance; Asset Managers Allowed Proprietary Trading in Debt Segment.</h1> The Securities and Exchange Board of India (SEBI) issued the Mutual Funds (Second Amendment) Regulations, 2020, effective upon publication in the Official Gazette. Key amendments include allowing asset management companies to become proprietary trading members for debt segment trades and self-clearing members for settling trades. New clauses mandate CEOs to ensure adherence to the Code of Conduct for Fund Managers and Dealers, with breaches reported to the Board of Directors. Fund Managers and Dealers must submit quarterly compliance certifications. The regulations emphasize ethical standards, transparency, and fair execution practices, prohibiting unethical trading practices and conflicts of interest.