Photo of Sangram Mallick

Principal Associate in the Disputes Practice at the Mumbai office of Cyril Amarchand Mangaldas. Sangram has over 10 years of experience, and before joining the firm he was an Assistant General Manager with SEBI. Sangram advises on disputes related to securities regulation, and can be reached at sangram.mallick@cyrilshroff.com

 

SEBI’s efforts to curtail front running: Increasing onus on Asset Management Companies

The Securities and Exchange Board of India (“SEBI”) in its 205th board meeting[1] held on April 30, 2024, has approved amendments to the SEBI (Mutual Funds) Regulations, 1996 (“MF Regulations”), to enhance the existing regulatory framework for Asset Management Companies (“AMCs”) for facilitating identification and deterrence of potential market abuse, including front running[2]. As part of the said decision, detailed in its press release dated April 30, 2024, AMCs would be required to put in place an appropriate institutional mechanism, consisting of enhanced surveillance systems, internal control procedures and escalation processes to identify, monitor and address various types of misconduct. Additionally, SEBI’s Board has approved amendments in the relevant regulations to enhance responsibility and accountability of the management of AMCs for the said institutional mechanism and also for AMCs to put in place a whistle-blower mechanism.Continue Reading SEBI’s efforts to curtail front running: Increasing onus on Asset Management Companies