INSIDER TRADING

Aug. 3, 2020

SEBI has amended insider trading norms. The new insider trading regulations have become effective from July 17, 2020. This comes after the board of SEBI approved a proposal in this regard last month.

Key highlights of amendments:

Listed entities will have to maintain a structured digital database containing nature of unpublished price-sensitive information (UPSI), the names of persons who have shared the information, automation of the process of filing disclosures to stock exchanges, and restriction on trading window.
The structured digital database will be preserved for a period of at least 8 years after completion of the relevant transactions.
Such database will not be outsourced and will be maintained internally with adequate internal controls to ensure non-tampering of the database.
Entities would have to file the non-compliance of code of conduct with the stock exchanges, and the amounts if any collected for such non-compliances would be credited to the Investor Protection Education Fund administered by SEBI.