SEBI may introduce a Code of Conduct for MF Managers
On Tuesday, the market regulator has declared a barge of proposals to make MF more liable. It also determined to introduce a code of conduct for Asset management companies, mutual fund managers, and dealers of AMCs.
Now, the detailed outlining rule will apply to fund managers chief investment officers, and dealers of asset management companies. On account of this, the board will approve a change of mutual fund regulations after the declaration.
However, the chief executive officer will be capable to verify the new rule followed by all managers.
At present, the MF new norms will apply to AMCs and trustees to follow the rules. Moreover, the AMCs will become a self-clearing member of a particular clearing corporation to clear and settle trades in the debt segment. This would be a part of its mutual fund scheme.
Right now, the orders are set by MF and go through the broker. Then the order runs via a clearing member. By this move, investors may put orders at lower costs, as of SEBI norms.
On the other hand, the debenture trustees will also strengthen by the SEBI‘s new norms. The market regulator may allow debenture trustees to conduct a self-governing inspection of assets.