Compliance towards tracking and monitoring employee personal securities trading has leapt the forefront of every Mutual Funds firm’s most critical component. SEBI imposes certain restrictions and reporting obligations on employees of mutual funds with respect to personal transactions in securities.
Tracking and monitoring of employee securities trading have been a manual process using papers or spreadsheets till date. This manual process leads to difficulty in producing required reports and in monitoring the regular employee trading activities, resulting in extremely high time and resource consumption to complete such tasks.
Most firms are finding the process much complicated and automating such process can drastically bring the resource and time consumption graph down.
Investrail, as an employee trade monitoring tool, can capture, analyze and report all the trading activities of your employees.
It conveniently helps the MF/AMC companies to comply with the SEBI regulations by closely tracking the employee’s investments, validating them against a set of pre-defined investment rules & highlighting the breaches if any.
Automation of employee personal trading system saves time and money and also ensures that you are compliant with the industry regulations and internal rules and policies.
- A workflow to pre-approve employee transactions based on defined parameters
- A reporting tool to allow employees to report their transactions within the designated time window after executing the transaction
- Reporting of initial holding and annual holding
- Options to monitor contra transactions
- Automatic approval or manual approval
- Facility to monitor various financial transactions of employees
- Facility to maintain certificate details
- Facility to capture gifts given and received
- A monitoring tool to detect breaches and take follow-up action
- An MIS tool to help generate necessary MIS for decision support and reporting to boards
- A repository to maintain certification data of employees
- Helps the compliance team to ensure conformity to the SEBI Guidelines applicable for investments by AMC employees and also Insider trading
- Auto approval/rejection of trade requests based on the pre-defined rules
- Facility to capture various breach scenarios like quantity breach, late reporting breaches, Annual holding submission breach etc
- Effective risk & control measures like disallowing trade reporting facility for an employee in case of quantity breach
- Maintains gray listed shares
- Maintains track of current investments actively managed by the AMC
- Access persons can apply for pre-approval of trades request
- Employees can report the securities holdings online
- Facility to alert the compliance for late reporting
- Breach alerts are automated from the system
- Facility to upload the declaration/ undertakings for security prior approval & security trades reporting
- Reconciliation facility between the trade requests v/s reported trades
- Integration with MFund/Quantis system to get traded securities by MFC
- Integration with NSE/BSE exchange and AMFI to get scrip details
- Effective audit tracking