Nov 7, 2019

SEBI Issues Clarifications on Prohibition of Insider Trading Regulations, 2015

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To clear the ambiguity surrounding Insider law compliances in the Country, The Securities and Exchange Board of India on November 04, 2019 has issued FAQ’s to clarify key aspects of SEBI (Prohibition of Insider Trading) Regulations, 2015, with regard to the following:

  1. Pre-Clearance in case of exercise of Employee Stock Options: It was clarified that no Pre-clearance shall be required at the time of exercise of Employee Stock Options, however at the time of sale of shares, obtained pursuant to such exercise, requirement of Pre – Clearance shall arise.
  2. Coverage of trading in Depository Receipts by Foreign National Employees: It was clarified that trading in Depository Receipts by the Foreign National Employees are covered under the ambit of SEBI (PIT) Regulations, 2015. Hence, every Foreign National who is a Designated Person shall be bound by the Company’s Code of Conduct.
  3. Collection and retention of information in case of resignation of Designated Person: It was clarified that upon resignation of a Designated Person, a Company/ Intermediary/ Fiduciary should maintain the updated address and contact details of such persons and shall make efforts to maintain updated address and contact details of such persons for one year after resignation from service. Such data should be preserved by the company/ intermediary/ fiduciary for a period of 5 years. 
  4. Maintenance of Information under structured digital database: It was clarified that upon sharing of any Unpublished Price Sensitive Information by the Company to any third party, it shall maintain the names of such third party along with its PAN or other unique identifier authorised by law (in case PAN is not available).
  5. Further, such third party shall at its own end, maintain details as required under Schedule C of SEBI (PIT) Regulations, 2015 in respect of persons having access to UPSI.

    At Corporate Professionals, it’s our constant endeavor to facilitate Corporates to operate ethically under the legal environment with the resilient solutions and advisory services offered by our team of highly experienced multidisciplinary professionals.

✜ 360 services offered by us aiming compliance of SEBI (PIT) Regulations, 2015:

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    ▣ Designing Internal Control System
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    ▣ Representation before Appellate Authorities

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