TaxTMI 
TaxTMI 
Code of conduct
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....e scheme. 2. Trustees and asset management companies must ensure the dissemination to all unitholders of adequate, accurate, explicit and timely information fairly presented in a simple language about the investment policies, investment objectives, financial position and general affairs of the scheme. 3. Trustees and asset management companies should avoid excessive concentration of business with broking firms, ^7[associates] and also excessive holding of units in a scheme among a few investors. 4. Trustees and asset management companies must avoid conflicts of interest in managing the affairs of the schemes and keep the interest of all unitholders paramount in all matters. ^8[(5) Trustees and asset management companies shall en....
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....on in the said security has been made, while rendering such advice. (b) In case an employee of the sponsor, the trustees or the asset management company is rendering such advice, he shall also disclose the interest of his dependent family members and the employer including their long or short position in the said security, while rendering such advice.] ^6[PART - B [Regulations 25(6A)(b), 25(6B)(b), 25(6C)(b) and 68(h)] For the Fund Managers and Dealers General: 1. Dealers and Fund Managers shall: (a) ensure that investments are made in the interest of the unit holders; (b) strive for highest ethical and professional standards to enhance the reputation of the markets; (c) act honestly in dealings ....
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....include their relatives or any entity upon whom the Fund Manager/Dealer/Chief Executive Officer could exercise control; (j) not offer or accept any inducement in connection with the affairs or business of managing the funds of unitholders which is likely to conflict with the duties owed to the unitholders; (k) disclose all interests in securities as required by all applicable statutory requirements; and (l) not receive any gift or entertainment which is not in adherence of the gift and entertainment policy of the Asset Management Company framed in this regard. Communication: Channels, disclosures and transparency: 2. Dealers and Fund Managers shall: (a) always communicate in unambiguous, transparent....
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....b) record in writing, the decision of buying or selling securities together with the detailed justifications for such decisions; and (c) not indulge any act or practice which results in artificial window dressing of the NAV. 3.2. Dealers and Fund Managers shall: (a) adopt fair and prompt deal execution practices; (b) fully document all correspondence and understanding during a deal with counterparties in the books of the fund if they have committed to the transactions on behalf of the mutual fund; (c) not favour one scheme over another for the purpose of security allocation, transfer of benefits (profit/loss) or any valuation gain/ loss including by way of inter scheme transfers or otherwise; ....
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....h/quarter end with an understanding to purchase the same at a later date for any purpose including to meet periodic liquidity or to avoid month end disclosure.] ************** NOTES:- 1 Substituted for 'or' by the SEBI (Mutual Funds) (Amendment) Regulations, 1998 w.e.f. 12-1-1998. 2 Substituted for 'cash' ibid.. 3 Inserted by the SEBI (Mutual Funds) (Amendment) Regulations, 1999 w.e.f. 8-12-1999. 4 Inserted by the SEBI (Investment Advice by Intermediaries) (Amendment) Regulations, 2001,w.e.f. 29-5-2001. 5. Inserted vide Notification No. SEBI/LAD-NRO/GN/2020/39 dated 29-10-2020 6. Inserted vide Notification No. SEBI/LAD-NRO/GN/2020/39 dated 29-10-20....