Market regulator Securities and Exchange Board of India (Sebi) has proposed to bring in buying and selling of mutual fund units under insider trading rules.
Currently, these are specifically excluded from the Prohibition of Insider Trading (PIT) regulations.
“A need has, therefore, been felt to harmonize the provisions in PIT Regulations to initiate serious enforcement actions against those who misuse the sensitive non-public information pertaining to scheme of mutual fund, directly or indirectly, to which they have access, by virtue of their fiduciary capacity,” Sebi said in a discussion paper on Friday.
