Sebi's regulation of mutual funds welcome but with caveats
- Insider trading is easy to understand as a concept but difficult to pin down as an empirical fact
Sebi’s proposal to bring mutual funds under its Prohibition of Insider Trading Regulations 2015 is a welcome move. However, some classes of individuals associated with mutual funds, whose possession of price-sensitive unpublished information is hypothetical and not definitive, could be made to disclose their trades, rather than proscribed from trading.
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