Market regulator Sebi devices framework to curb insider trading

Market regulator has come up with a new framework that will prevent company insiders from dealing in shares during the closure of the trading window. Under Sebi’s prevention of (PIT) regulations, the trading window is closed when the compliance officer determines that a designated person or class of designated persons are in possession of unpublished price sensitive information.

During this time, they and their immediate relatives are not allowed to deal in securities of the company to prevent misuse. However, often company insiders inadvertently trade in stocks without fully knowing the restrictions. “Improve ease of doing business and prevent inadvertent non-compliances of provisions of PIT Regulations by DPs, after having deliberations with bourse and Depositories and listed companies, it has been decided that Stock Exchanges and Depositories shall develop a system to restrict trading by DPs of listed company during trading window closure period,” said in a circular.

Initially, the new system will be applicable only for companies that are part of Sensex and the Nifty.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Source link

Leave a Reply

Your email address will not be published.

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Back to top button