TaxTMI 
TaxTMI 
TaxTMI 
Investment/ trading in securities by employees and Board members of AMC(s) and Trustees of Mutual Funds
X X X X Extracts X X X X
X X X X Extracts X X X X
....ragraph II(B)(2) of Annexure A of the circular dated November 17, 2016, regarding the objectives of the guidelines and definition of 'access person', shall read as under: "To ensure that the employees of AMC(s), Board members of AMC(s) and Board members of Trustees, including Access Persons shall not take undue advantage of any sensitive information that they may have about any company or its securities or about the AMC's schemes or its units. Access Person for the purpose of these Guidelines shall mean the Head of the AMC (designated as CEO/Managing Director/President or by any other name), Executive Directors, Chief Investment Officer, Chief Risk Officer, Chief Operation Officer, Chief Information Security Officer, Fund Managers, Dealers, Research Analysts, all employees in the Fund Operations Department, Compliance Officer and Heads of all divisions and/or departments or any other employee as decided by the AMC(s) and/or Trustees. Non-Executive Directors of the AMC/trustee company or trustees who are in possession of / have access to any non-public information which could materially impact the price of the securities, NAV of the schemes or interest of the unitholders shall a....
X X X X Extracts X X X X
X X X X Extracts X X X X
....re that from the time of making an application under clause (d) till the conclusion of the sale of the concerned securities, he/she is not in possession of / does not have access to any non-public information which could materially impact the price of the concerned securities. Compliance Officer shall not grant clearance for such transaction, where the Asset Management Company is in possession of / has access to any non-public information which could materially impact the price of the concerned securities. h. The Compliance Officer shall maintain all other regulatory checks and obtain necessary undertakings from the Access Person. In case of pre-existing pledges / encumbered arrangements (i.e., securities pledged prior to becoming an Access Person), the provisions of "cooling off" period shall not be applicable in the event of sale of securities by lenders due to shortfall of margin, subject to the following: a. Access person shall, on the date of applicability of this circular or on the date of joining the AMC or on the date of being designated as such, declare to the Compliance Officer (i) details of all the pre-existing pledges / encumbered arrangements in which the securi....
X X X X Extracts X X X X
X X X X Extracts X X X X
....od of: a. a change in the investment objectives of the concerned Mutual Fund Scheme(s); b. a change in the accounting policy; c. a material change in the valuation of any asset, or class of assets; d. conversion of a close ended scheme to an open-ended scheme or an open-ended scheme to a close ended scheme; e. restrictions on redemptions, winding up of scheme(s); f. creation of segregated portfolio; g. material change in the liquidity position of the concerned Mutual Fund Scheme(s); h. default in the underlying securities which is material to the concerned Mutual Fund Scheme(s) etc." 3. All the provisions of this circular shall be applicable with effect from December 01, 2021 except for the provision at para 2.3 which shall be applicable from the date of this circular. 4. For ease of reference, the consolidated norms for investment / trading in securities by employees and Board members of AMC(s) and Trustees of Mutual Fund are given in Annexure to this circular. 5. This circular is issued in exercise of the powers conferred under Section 11 (1) of the Securities and Exchange Board of India Act, 1992, read with the provision of Regulation 77 of SEBI (Mutual Fun....
X X X X Extracts X X X X
X X X X Extracts X X X X
....EO/Managing Director/President or by any other name), Executive Directors, Chief Investment Officer, Chief Risk Officer, Chief Operation Officer, Chief Information Security Officer, Fund Managers, Dealers, Research Analysts, all employees in the Fund Operations Department, Compliance Officer and Heads of all divisions and/or departments or any other employee as decided by the AMC(s) and/or Trustees. Non-Executive Directors of the AMC/trustee company or trustees who are in possession of / have access to any non-public information which could materially impact the price of the securities, NAV of the schemes or interest of the unitholders shall also be deemed as Access Persons. 2.2.3. To guide employees of AMC(s) and Trustees in maintaining a high standard of probity that one would expect from an employee in a position of responsibility. 2.3. General 2.3.1. Investments covered: 2.3.1.1. These Guidelines cover transactions for purchase or sale of any securities such as shares, debentures, bonds, warrants, derivatives and units of schemes floated by Mutual Funds / AMCs where the concerned persons (in terms of the applicability stated at Clause 2.1.1 above) are employed. 2.3.1.....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ty within a period of 30 calendar days from the date of their personal transaction. However, in cases where it is done, the employee shall provide a suitable explanation to the Compliance Officer, which shall be reported to the Board of the AMC and the Trustees at the time of review. This clause shall not be applicable in case of investments and redemptions made in Mutual Fund units as per the provisions of SEBI circulars dated April 28, 2021 and September 20, 2021 on 'Alignment of interest of Key Employees ('Designated Employees') of Asset Management companies with the Unitholders of the Mutual Fund Schemes'. 2.4. Investments in Shares and/or Debentures and/or Bonds and/or Warrants and/or Derivatives Investments in securities shall broadly be classified into investments through (a) primary markets and (b) secondary markets. 2.4.1. Investments through the primary markets: 2.4.1.1. An employee including access person is permitted to apply to a public issue of shares and/or debentures and/or bonds and/or warrants of any company, as long as the application is made in the normal course of the public issue. Such an application may be made without seeking the clearance from the....
X X X X Extracts X X X X
X X X X Extracts X X X X
....nd/or sell, type of security, and the number of shares and/or debentures and/or bonds and/or warrants and/or derivatives that the access person wishes to buy/sell. 2.4.2.2. The Compliance Officer shall clear these requests if the following conditions are met: 2.4.2.2.1. If the shares and/or debentures and/or bonds and/or warrants of the company or derivatives specified by the access person are not held by any scheme of the Mutual Fund of which the AMC is the investment manager; 2.4.2.2.2. If such shares and/or debentures and/or bonds and/or warrants of the company or derivatives specified by the employee are held by any scheme of the Mutual Fund of which the AMC is the investment manager, there should be a "cooling off" period of 15 calendar days. The Compliance Officer shall ensure that the last transaction in that particular security was done by the Mutual Fund at least 15 calendar days prior to the date of the written application by the access person. In other words, an application for a purchase /sale transaction on a personal basis would be cleared only if the Mutual Fund has not transacted in that particular security for at least 15 calendar days. 2.4.2.2.3. However, ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ovisions of "cooling off" period shall not be applicable in the event of sale of securities by lenders due to shortfall of margin, subject to the following: (a) Access person shall, on the date of applicability of this circular or on the date of joining the AMC or on the date of being designated as such, declare to the Compliance Officer, (i) details of all the pre-existing pledges / encumbered arrangements in which the securities held by him/her are pledged or encumbered and (ii) details of ESOPs bought with borrowed funds, along with the agreement with such lender. (b) Any instances of sale of securities by lender shall be promptly intimated to the Compliance Officer. The Access Person shall ensure the following and submit a self-declaration to the following effect: * that the Access Person has not engaged directly or indirectly in front-running, self-dealing, trading while in possession of non-public information which could materially impact the price of the concerned securities or any other prohibited activities. * that the sale by the lender was due to shortfall of margin as per the terms of agreement with the lender and he had not entered into any other arrangement ....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... Mutual Fund Schemes 2.5.1. Access persons as well as other employees do not require prior clearance of the Compliance Officer for purchase or sale of units of Mutual Fund schemes. However, details of each such transaction, excluding transactions in overnight schemes shall be reported by them to the Compliance Officer within 7 calendar days from the date of transaction. This clause shall not be applicable in case of investments and redemptions made in Mutual Fund units as per the provisions of SEBI circulars dated April 28, 2021 and September 20, 2021 on 'Alignment of interest of Key Employees ('Designated Employees') of Asset Management companies with the Unitholders of the Mutual Fund Schemes'. 2.5.2. In case of investments in SIP of any Mutual Fund scheme, the employees may report only at the time of making the first installment of the SIP. 2.5.3. Notwithstanding anything mentioned earlier, employees of AMC(s), Board members of AMC(s) and Board members of Trustees, including Access Persons shall not purchase or sell or repurchase or redeem units of any scheme, including overnight scheme of their Mutual Fund, where any information available to the Mutual Fund is not yet c....