Share page with AddThis


India introduces fund manager code of conduct

Indian stocksThe Securities and Exchange Board of India (Sebi) has brought in a code of conduct for fund managers and asset management companies (AMCs) in a bid to make the industry more accountable.

The code will also make it permissible for AMCs to become self-clearing members and clear and settle trades on behalf of its mutual fund schemes. The introduction of the code comes after the proposal was approved by the Sebi board in late September.

According to the new rules, fund managers will have to submit a quarterly report to trustees certifying that they have complied with the code or listing any exceptions.

Furthermore, fund managers will have to record in writing the reasons for any securities trading decisions and not indulge in any act which results in the artificial inflation of net asset value.

Other issues addressed in the code include a commitment to best execution, the identification of conflicts of interest, unambiguous disclosure, and a commitment to not “indulge in any unethical business activities or professional misconduct involving dishonesty, fraud or deceit or commit any act that could damage the reputation of the organisation or the mutual fund industry”.

© 2020 funds europe