Agrud Partners’ Post

🚨 Important Update Your mutual fund redemptions, SWP, switch, STP will stop if you don’t do this by July 1 🚨 If you're a mutual fund unit holder, there's an essential deadline you need to know about. The Securities and Exchange Board of India (SEBI) mandates that all single-holder mutual fund accounts must opt in or opt out of nomination by June 30, 2024. Failure to do so will result in your folio being blocked for debits, meaning transactions like Redemptions, SWP, Switch, and STP will not be permitted from July 1, 2024. 🔍 Key Details: Deadline: June 30, 2024 Requirement: Opt in or opt out of nomination Impact: Folios blocked for debits if not completed 💡 Who is Affected? Single Holder Accounts: Mandatory opt-in or opt-out of nomination Jointly Held Accounts: Optional, per SEBI's circular dated April 30, 2024 🔗 How to Add Nominee to Demat Account: Click on the URL: https://lnkd.in/dxAEdkCY Subscribe and enter DP ID + Client ID + PAN and OTP Choose to opt-in or opt-out of nomination Enter nominee details and confirm with OTP authentication Complete Aadhaar eSign and final OTP submission 📝 For CAMS Users: Use the online feature for OTP-based authentication to declare nominee(s) or opt-out This feature is not applicable for mutual fund holdings in Demat mode 📢 Ensure your nominations are updated to avoid any disruptions to your mutual fund transactions. Act now and secure your investments! 🔗 Disclaimer: This post is for informational purposes only. Please consult with your financial advisor or Contact US for Personalized Guidance. https://wa.me/919552528331 💬 Share your thoughts and questions in the comments below! 👇 #MutualFunds #Investment #SEBI #Nomination #FinancialPlanning #InvestorAlert #SecureInvestments 💼💡🔐

Can SEBI question your fund manager’s buy-sell decision? ✅ In July, SEBI imposed a fine of Rs 5 lakh on HSBC Mutual Fund for not recording detailed reasons behind purchase and sale of shares in some of its underlying companies. ✅ Further, the fund house failed to ensure and verify that due diligence was being exercised while making investment decisions, the SEBI order said. ✅ The order pertains to the erstwhile L&T Mutual Fund, which was acquired by HSBC MF in November 2022. ✅ In the same case, an Adjudicating Officer (AO) in August 23, 2023 had disposed of the proceedings and exonerated the AMC. ✅ However, in November 2023, SEBI reopened the case and passed fresh order, holding that the AO Order was “erroneous” and prejudicial to the interest of the securities market. ✅ According to the order, SEBI has the power to review an order even if the same has resulted in exoneration of an entity. ✅ Based on the findings of an inspection of L&T MF, it was found that the fund house had not properly recorded its investment decisions as per SEBI regulations as it had failed to maintain records containing data, facts and opinion in support of each scrip wise investment decisions. ✅ According to a July 2000 SEBI circular, AMCs must maintain records in support of each investment decision which will indicate the data, facts and opinion leading to that decision. Read Abhinav Kaul story moneycontrol.com

The Securities and Exchange Board of India (SEBI) is set to enforce insider trading regulations on mutual fund units starting November 1, 2024. This move aims to enhance transparency and prevent insider trading in the mutual fund industry, which has seen past incidents of misuse, notably during the Franklin Templeton case. Under the new rules, asset management companies (AMCs) must disclose holdings of designated persons and their immediate relatives quarterly. Transactions exceeding ₹15 lakh must be reported to compliance officers within two business days. This regulation aligns mutual fund units with existing securities laws, ensuring that all market participants operate under the same legal framework. The new Prohibition of Insider Trading (PIT) framework will significantly increase the compliance burden on Asset Management Companies (AMCs). Starting November 1, 2024, AMCs must disclose holdings of designated persons and their immediate relatives quarterly, along with reporting transactions exceeding ₹15 lakh within two days. This framework aligns mutual fund units with securities regulations, requiring AMCs to implement rigorous internal controls and surveillance systems to monitor insider trading activities. The expanded definition of "connected persons" broadens the scope of compliance, necessitating AMCs to manage a larger pool of individuals who may have access to unpublished price-sensitive information (UPSI). Moreover, the requirement for pre-clearance of transactions and maintaining detailed records will demand substantial resources and could lead to increased operational complexities for AMCs. Overall, while these regulations aim to enhance market integrity, they impose significant challenges in compliance management for AMCs. The new PIT framework will significantly impact "connected persons" within mutual funds. This broad definition now includes not only employees and board members but also sponsors, immediate relatives, and anyone associated with the fund in the last two months. This expansion increases the compliance burden, as many individuals who may not have access to unpublished price-sensitive information (UPSI) could still be classified as connected persons. They will face stricter reporting requirements and restrictions on trading, even if they lack relevant insider information. Thus, the framework aims to enhance transparency but complicates compliance for a larger group of stakeholders. #sebi #mutualfunds #pit #insidertrading #amc #upsi

Coming soon: Mutual funds to be governed by SEBI’s insider trading norms. ✅ In simple words, senior employees of fund houses will not be able to sell mutual fund (MF) holdings in their own fund houses if they know before the rest of the world of approaching trouble in the firm or any of its schemes. ✅ This has been a concern for many investors when in some recent cases it was observed that when some MF schemes’ net asset values (NAVs) fell sharply or suffered due to bad decisions by fund managers, the investors got stuck with the aftermath but some senior officials were later found to have withdrawn their own personal units in advance, sensing problems ahead. ✅ It happened at a foreign fund house which wound up few of its debt schemes during the Covid-19 induced liquidity crisis in 2020. ✅ It also allegedly happened at BOI-AXA Mutual Fund and the firm settled the case with SEBI in 2022. ✅ Weren't existing guidelines enough? Not quite. 1) SEBI had included only stocks and bonds in SEBI Prohibition of Insider Trading (PIT) Regulations. Now, mutual fund units are also included. ✅ It was widely believed before that only share prices can be affected by insider trading and insiders can get unfairly benefit. ✅ Now SEBI has widened the definition and ambit of insider trading and included MF units. Any unfair use of unpublished price-sensitive information for personal benefit will also mean insider trading. ✅ But SEBI had issued circular before on this and had barred fund officials from selling their MF units (in their personal capacity) in certain situations, right? ✅ Yes, but the situations have been updated, the definition of 'connected people' widened and inclusion of MF units in the SEBI PIT Regulations mean closer monitoring, standardisation of norms and better implementation of laws.

As per Bussiness Today “India's mutual fund industry is now the second-largest in the world. It's one of the fastest-growing markets in the world, with over 46 million households investing in Mutual Funds” Welcome measures by SEBI to enhance the transparency of the MF industry and to protect investors hard earned money. https://lnkd.in/daVSGeFF #investing #mutualfunds #personalfinance #finance #constructionleaders #sebi #construction #bussinesstimes Credits: Bussiness today

Canadian Securities updates: #headings #updates #November #December Canadian securities regulators reduce regulatory burden for investment funds in continuous distribution. The Canadian Securities Administrators (CSA) today announced final rules modernizing the prospectus filing model for investment funds that reduce regulatory burden without affecting the quality or timeliness of information available to investors. Canadian securities regulators explore streamlining registration delegation to the Canadian Investment Regulatory Organization The Canadian Securities Administrators (CSA) has published for comment proposed amendments to the principal distributor model in the distribution of mutual funds. The proposed amendments clarify that a principal distributor may only act for mutual funds in the same mutual fund family and require disclosure of principal distributor arrangements and compensation to investors purchasing mutual fund securities distributed by principal distributors. Canadian securities regulators propose amendments to Multilateral Instrument 13-102 System Fees The Canadian Securities Administrators (CSA) today published for comment proposed amendments to Multilateral Instrument 13-102 System Fees. The proposal is intended to better align system fee revenues with projected national systems operating costs. Canadian securities regulators explore streamlining registration delegation to the Canadian Investment Regulatory Organization The Canadian Securities Administrators (CSA) announced today its members will be considering delegating certain registration functions and powers to the Canadian Investment Regulatory Organization (CIRO). CIRO currently performs certain registration functions for some CSA members under delegated authority, and this further delegation would create a consistent and harmonized approach in registration processes for CIRO members across Canada. CSA proposes amendments and changes to implement an access model for certain continuous disclosure documents of non-investment fund reporting issuers The Canadian Securities Administrators (CSA) is seeking feedback on proposed amendments and changes to implement an access model for certain disclosure documents of non-investment fund reporting issuers (the Proposed Access Model).

After several reminders and multiple deadline extensions, SEBI has exempted joint holders from nominating a beneficiary for their mutual fund holdings. My today's story helps you understand which MF holding should you opt: Joint vs single with nomination While joint holding simplifies the transfer of units to the second holder with minimal paperwork, it requires both holders to physically sign for transactions, potentially leading to legal disputes in case of disagreements. This can be costly and time-consuming. On the contrary, a single holding with nomination offers the convenience of online transactions and reduces the likelihood of disputes. The nominee, however, does not have any rights to the units until the demise of the sole holder. It's important to note that legal heirs or a will can supersede the nominee's claim. In conclusion, having a will in place is a secure method to ensure that your units are transferred according to your wishes, regardless of the holding mode you choose. Read full story - https://lnkd.in/dDwpAURK Neil Borate LiveMint

SEBI has strengthened the regulatory framework in relation to Prohibition of Insider Trading in units of mutual funds. As per the changes, AMCs will have to disclose the details of the holdings of Designated Persons, Trustees and their immediate relatives on an aggregate basis, from November 1, 2024, on a quarterly basis. https://lnkd.in/dWrWGqiV #SEBI #insidertrading #mutualfunds #AMCs #trustees #connectedpersons #regulatoryupdate

Quant Mutual Fund - The Exact Story Quant Mutual Fund has informed its investors that the market regulator’s data collection was part of a court-approved search-and-seizure operation, not a routine inquiry. On July 13, the mutual fund sent an email to its investors to clarify this matter. Finwealth first reported that the Securities and Exchange Board of India (Sebi) conducted search-and-seizure operations at the mutual fund house. This was part of an investigation into suspected front-running of trades. Following this, Quant informed its investors that it had received “inquiries from Sebi.” Initially, the mutual fund described the Sebi inquiry as a “regular ongoing process globally by regulators to collect data and analyze it.” The latest communication aims to clarify this statement, specifically addressing the first question in the FAQs. In the most recent email, Quant Mutual Fund stated, “This has reference to question 1 of the FAQs in the trailing email. We have been receiving further queries in this regard. We would like to clarify that the data collected by the regulator was not part of any regular process but was part of a court-approved search and seizure operation with respect to an ongoing investigation initiated by SEBI.” Legal experts emphasize that search-and-seizure operations are more serious than standard regulatory inquiries. Vasudha Goenka, a partner at Cyril Amarchand Mangaldas, explained, “A search and seizure operation is carried out pursuant to the investigating authority of SEBI obtaining an order from the magistrate or judge of the designated court under Section 11C (9) of the SEBI Act.” She added, “This operation grants the investigating authority lawful power to enter premises, search, and seize documents deemed necessary, which is more intrusive than other types of inquiries.” This development underscores the gravity of the ongoing investigation into the mutual fund house, impacting the stock market and finance sector in India. #stockmarket #stocks #Mutualfund #Quant #India #Sebi #nse #bse #nifty #sensex

New Post: Sebi Settles AIF Rule Violation Case for Rs 28.5 Lakh: Rediff Moneynews - Three entities, including Utthishta Virat Fund, have reached a settlement with the Securities and Exchange Board of India (Sebi) after paying Rs 28.5 lakh for violating Alternate Investment Fund (AIF) norms and other regulatory rules. The settlement was made by Utthishta Virat Fund, Utthishta Management Advisors LLP, and P Rama Krishna, who faced potential enforcement actions for these violations. Sebi's analysis revealed that Utthishta Virat Fund's sponsor interest was below the required threshold of 2.5% of the investible corpus, violating AIF regulations. The matter was resolved after the applicants paid the settlement amount, confirming the resolution with Sebi. Read the full article here https://lnkd.in/dnqcJvYg #Venturecapital #VC #investment #LP #Limited Partner