Amendment in the SEBI (Prohibition of Insider Trading) Regulations, 2015
In a recent amendment to SEBI (Prohibition of Insider Trading) Regulations, 2015, it has been directed that the Board of Directors or the head of the organization of listed entities are required to maintain a database containing the nature of unpublished price sensitive information (UPSI), the names of persons who have shared the information and also the names of persons to whom the information has been shared. Further, the database shall be maintained internally and shall not be outsourced.
The amendment has also emphasized upon the need to preserve the structured digital database for a period of 8 years after the completion of the relevant transaction. If any investigation or enforcement proceeding is initiated then it has to be preserved till the completion of the proceedings.
Further, the above disclosures shall be made in a proper form as prescribed by SEBI from time to time.
For contraventions of the code of conduct as envisaged in Schedule B and C of the said regulations, any fine collected by way of penalty shall be remitted to SEBI to be credited to the Investors Education and Protection Fund.
Further, the violation of the regulations is required to be filed with the Stock Exchanges, where the concerned securities are traded, instead of SEBI.
