Securities and Exchanges Board of India has tightened insider trading rules by including mutual funds units within the purview of SEBI (Prohibition of Insider Trading) Regulations, 2015. Sebi mandates that MF AMCs, their trustees, employees, and directors strictly follow its insider trading prohibition rules and, most importantly, disclose the holdings of designated persons and their immediate relatives quarterly. The rules prevent senior employees or their relatives at fund houses from selling mutual fund holdings if they have privileged information about upcoming issues. For example, in 2023, Franklin Templeton officials redeemed holdings before six debt schemes closed. The recent proposals also aim to expand the definition of 'connected people' related to these rules.