Sebi on Friday requested inventory exchanges and depositories to develop a system whereby everlasting account numbers of an organization’s designated individuals are frozen for a selected interval to curb inadvertent trades throughout the buying and selling window closure. Initially, the brand new framework can be relevant to declaration of economic outcomes of listed firms which might be or had been a part of benchmark indices — Nifty 50 and Sensex — for the quarter ending September 30, 2022.

Additional, the restriction on buying and selling can be for on-market transactions, off-market transfers and creation of pledge in fairness shares and fairness derivatives contracts (Futures and Choices) of such listed firms.

The framework can be efficient from the quarter ending September 30, the Securities and Trade Board of India (Sebi) mentioned in a round.



The regulator mentioned the compliance officer and Designated Individuals (DPs) of listed firms will proceed to independently adjust to the obligations underneath insider buying and selling guidelines, as relevant to them, until additional communication.

Below the brand new framework, the designated depository will present entry to a listed firm on a portal for specifying the buying and selling window closure interval. The portal will auto-populate particulars of DPs like PAN (Everlasting Account Quantity) and identify.

The listed firm must replace PAN of DPs to be frozen and “begin and finish date” of buying and selling window closure interval.

Additional, the corporate must choose or de-select PANs of DPs at the least two buying and selling days prior to start out of the buying and selling window closure interval.

Subsequently, the designated depository must present related knowledge to inventory exchanges and different depositories by subsequent buying and selling day — T-1 day — and on every day foundation for any updation in DPs throughout buying and selling window closure interval.

From T day, depositories and inventory exchanges must prohibit buying and selling of the DP involved until the top of the buying and selling window closure interval.

Any addition or exemption to a DP throughout the buying and selling window closure interval can be effected inside two buying and selling days of intimation by firm.



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