CAIRR Update October 09, 2020

October 09, 2020

Summary of the clarification issued by SEBI dated 08/10/2020

SEBI clarifies certain provisions with respect to Insider Trading regulations

Key highlights of the revised FAQ issued by SEBI with respect to the Insider Trading Regulations are as follows:

1. While pre-clearance is not required for exercise of such stock options, sale of shares by employees after the exercise of Stock Options shall be subject to pre-clearance
2. Employees of Indian companies who are foreign nationals shall trade in ADRs and GDRs subject to adhering to the Code of Conduct prescribed by the PIT regulations.
3. Pursuant to the changes made to the PIT regulations with respect to maintaining Structural Digital Database by the Listed Companies, details of Unpublished Price Sensitive Information (UPSI), details of persons who have shared and with whom it has been shared shall be stored in the database. These details shall also be captured by the intermediary/fiduciary in their databases, in accordance with the Regulation and its schedules.
4. If a designated person resigns from the Listed Company, the company/intermediary/ fiduciary should make efforts to maintain updated address and contact details of such persons for one year after resignation from service, and such data shall be preserved for a period of 5 years.

This clarification is integrated in our free to use website www.ca2013.com for your easy reference.

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