Know about the proposal of sebi to include mutual fund under insider trading rules and how does it effect you.
Imagine there is some information about company that has not been published and it turns out to price sensitive.
sebi wants to curtail this unfair advantage that the possessor of such information have when they deal with mutual fund.
Sebi was pushed to make the suggestion of bringing mutual fund industry under insider training rule because of some recents events for example in franklin templeton fund house case few executives withdrew to the tune of 56 crores
Does that effect your mutual fund investment
Enforcement of insider trading rules in any industry make the industry more transparent and equitable because no one is able to take unfair advantage because of their position.
Who may worry about the inclusion of mutual funds under insider trading rule
Many people such as stock exchange officials, internal auditor of companies,bankers to the fund house , financial sector officials and many more, as they may fall under ambit of criteria of people holding price sensitive information.
Which other industries can be brought under the ambit of insider trading rules
Real estate investment trust, alternative investment fund and other such pooled investment can be brought under the ambit of rules in future.