Categories: Business

Sebi amends insider trading norms

Photo: PTI (FILE)

Sebi amends insider trading norms

new Delhi. The capital markets regulator Securities and Exchange Board of India (SEBI) has amended the rules of insider trading. Listed companies will now have to create a digital database about the nature of unpublished price sensitive information. SEBI Board of Directors approved a proposal in this regard last month. According to the changes made in the insider trading rules, listed companies will have to keep a structured digital database. It should contain complete information about the nature of unpublished price-sensitive information as well as the name of the person who has disseminated such information. Along with this, there should be a self-spontaneous process like automatic transmission of this type of information to the stock markets and ban on stock trading.

Sebi's notification issued on 17 July says about this. It also states that along with the name of the person who spreads the information, the information of the people with whom such information has been shared will also have to be kept. Authorized data containing PAN numbers or any other identification of individuals will also have to be kept with them. The revised rules state that this type of database cannot be handled outside any other entity. This entire maintenance has to be done internally, which should be adequately controlled. New regulations of insider trading have come into effect from July 17, 2020.

This post was published on July 22, 2020 12:53 am

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