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Sebi steps in to curb front-running by mutual funds

Livemint · 1y

The Securities and Exchange Board of India (SEBI) has approved amendments to mutual fund regulations to address front-running and fraudulent transactions. SEBI will establish an institutional mechanism that includes enhanced surveillance systems, internal control procedures, and escalation processes to curb misconduct such as front-running, insider trading, and misuse of sensitive information. SEBI has also streamlined prudential rules for passive mutual fund schemes to allow for increased exposure to group companies and approved greater flexibility for non-resident Indians and overseas citizens in certain foreign portfolio investors.