If you invest money in mutual funds or are thinking of investing, then know a rule related to this, which is going to be implemented from November 1. Market regulator SEBI said that the insider trading rule for mutual funds will come into effect from November 1. Under this, all transactions of more than Rs 15 lakh made by nominees or their close relatives in the mutual fund of the asset management company will have to be reported to the compliance officer within two business days. The limit of Rs 15 lakh in all schemes except exempted schemes can be either a one-time transaction or more than one transaction within a quarter.

The Securities and Exchange Board of India (SEBI) said in a circular that the new rule will come into effect from November 1. The regulator has asked asset management companies to provide information every quarter about the gross investments of their nominees, trustees, and their close relatives in mutual funds from November 1, 2024.

Monitoring transactions of more than Rs 15 lakh

According to SEBI, information about investments made in mutual funds till October 31 will have to be given to the stock markets by November 15. For the subsequent quarters, companies will have to provide information within 10 days after the end of the quarter. SEBI said, "Except for exempted schemes, details of all transactions of more than Rs 15 lakh per PAN in the schemes of their mutual fund by nominees, trustees, and their close relatives will be required to be given. This information will have to be given to the compliance officer of the AMC within two business days of the transaction.

The regulator said that employees should avoid making profits from trading in the same security within 30 days and if they make a transaction, they will have to tell the compliance officer about the reason for it. The compliance officer will inform the board of directors and trustees of the asset management company about this.

SEBI included trading in mutual fund units under insider trading rules through a notification in November 2022. It aimed to enhance integrity and transparency within asset management companies.