Sebi takes measures to curb fraudulent trades in mutual funds

The SEBI board announced on Tuesday its decision to revise regulations pertaining to mutual funds. As per the amendments, asset management companies (AMCs) are required to establish an "institutional mechanism" to detect and prevent potential market abuse, encompassing activities like front-running and fraudulent transactions in securities. ​​The mechanism should consist of enhanced surveillance systems, internal control procedures, and escalation processes.