Regulating insiders

Including mutual funds will be progressive

A consultation paper from the Securities and Exchange Board of India (Sebi) suggests bringing units of mutual funds within the ambit of the Prohibition of Insider Trading Regulations, 2015 (PIT, 2015). Units of mutual funds are specifically excluded from the definition of securities under the PIT at the moment. Other pooled investment vehicles such as alternative investment funds and real estate investment trusts are considered securities. This is a progressive step which brings mutual funds under regulations that govern direct trading in securities. This would enable the regulator to initiate serious enforcement actions against individuals who may misuse access to