Tuesday, June 16, 2015

Insider Trading norms

Securities and Exchange Board of India (SEBI) prescribes format for disclosure of securities held by promoter, KMP and Directors under Insider Trading Norms.

  1. The Companies shall also ensure that:

  • Formulated and published (on its official website), code of practices and procedures for fair disclosure of Unpublished Price Sensitive Information (UPSI), is confirmed to the stock exchanges, immediately.
  • Formulated code of conduct is confirmed to the stock exchanges, immediately.
  • A company deals with only such market intermediary/every other person, who is required to handle UPSI, who have formulated a code of conduct as per the requirements of the Regulations
       2.The Stock Exchanges are advised to:
  • Put in place the adequate systems and issue the necessary guidelines for implementing the above decision.
  • Make necessary amendments to the relevant bye-laws, rules and regulations as applicable for the implementation of the above decision immediately.
  • Bring the provisions of this circular to the notice of the listed companies/issuers and also to disseminate the same on the website immediately.

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