At the Sebi Board Meeting, the regulator announces actions to stop fraudulent mutual fund trading.

The capital market regulator Sebi approved a number of modifications to the mutual fund regulations, including the addition of an institutional safeguard against fraudulent transactions including front-running and insider trading. verifying a report from Zee Business. Additionally, the Sebi board approved an amendment that would have removed the requirement for depositories to provide Consolidated Account Statements in physical form in addition to allowing them to submit the documents solely digitally.

The nation’s capital market regulator, the Securities and Exchange Board of India (Sebi), approved revisions to a few mutual fund regulations on Tuesday. One of the adjustments was the addition of an institutional mechanism designed to thwart fraudulent trades including front-running and insider trading.

The discovery verified a stock24news.com A mechanism pertaining to mutual funds was mentioned in the Sebi board meeting agenda, along with the regulator’s annual financial report for 2023–2024, as the channel had previously reported, citing sources.

Some essential information regarding this significant development is as follows:

What kind of institutional mechanism exists? Asset management firms (AMCs) are required by a significant modification to the mutual fund standards to establish a system for identifying and discouraging possible market abuse, such as front-running and fraudulent securities transactions.

According to Sebi, the institutional mechanism should include internal control protocols, escalation processes, and improved surveillance tools to recognize, track, and deal with particular forms of misbehavior, such as insider trading, front-running, and misusing sensitive information in a statement made public following the conference.

To support the corporate debt market, the board also approved expediting the issuing of non-convertible securities.