%20(500%20%C3%97%20280%20px)%20(500%20x%20300%20px)%20(17).png "SEBI Amended Mutual Fund Rules to Curb Front-Running, Insider Trading")
- Key Amendments:
- Enhanced Disclosure Requirements:
- Mutual funds must disclose their daily net asset values (NAVs) and portfolio holdings more frequently.
- Fund managers and key personnel must report their trades within a shorter timeframe.
- Stricter Compliance and Monitoring:
- SEBI has introduced stricter compliance norms for fund managers and other key personnel.
- Enhanced surveillance mechanisms to detect and prevent front-running and insider trading activities.
- Penalties and Enforcement:
- Increased penalties for violations related to front-running and insider trading.
- SEBI has been given more powers to enforce these rules and take swift action against violators.
- Training and Awareness:
- Mandatory training programs for fund managers and other key personnel on ethical practices and compliance.
- Awareness campaigns to educate investors about the risks of front-running and insider trading.
- Objectives:
- Protect Investors: Ensure that investors’ interests are safeguarded by promoting fair practices.
- Market Integrity: Maintain the integrity of the financial markets by preventing unethical practices.
- Transparency: Increase transparency in mutual fund operations to build investor trust.
- These amendments are part of SEBI’s ongoing efforts to strengthen the regulatory framework and ensure a fair and transparent market environment.
Question:
1 What is one of the key objectives of SEBI's amendments to mutual fund rules?
- A) Protect investors and promote fair practices
- B) Reduce the tax burden on mutual funds
- C) Increase the returns of mutual funds
- D) Simplify the process of mutual fund investment
