Market regulator Sebi devices framework to curb insider trading

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

sebi
File photo: PTI
BS Reporter
1 min read Last Updated : Aug 06 2022 | 12:15 AM IST
Market regulator Sebi 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 insider trading (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when the compliance officer determines that a designated person or class of designated persons are in possession of unpublished price sensitive information.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,” Sebi said in a circular. 

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


One subscription. Two world-class reads.

Already subscribed? Log in

Subscribe to read the full story →
Subscribe to Business Standard digital and get complimentary access to The New York Times

Quarterly Starter

₹900

3 Months

₹300/Month

SAVE 25%

Smart Essential

₹2,700

1 Year

₹225/Month

Save 46%

Super Saver

₹3,900

2 Years

₹162/Month

Subscribe

Renews automatically, cancel anytime

Here’s what’s included in our digital subscription plans

Access to Exclusive Premium Stories Online

  • Over 30 behind the paywall stories daily, handpicked by our editors for subscribers

Complimentary Access to The New York Times

  • News, Games, Cooking, Audio, Wirecutter & The Athletic

Business Standard Epaper

  • Digital replica of our daily newspaper — with options to read, save, and share

Curated Newsletters

  • Insights on markets, finance, politics, tech, and more delivered to your inbox

Market Analysis & Investment Insights

  • In-depth market analysis & insights with access to The Smart Investor

Archives

  • Repository of articles and publications dating back to 1997

Ad-free Reading

  • Uninterrupted reading experience with no advertisements

Seamless Access Across All Devices

  • Access Business Standard across devices — mobile, tablet, or PC, via web or app

Topics :SEBIInsider TradingBSE NSE

Next Story