Latest SEBI changes – Digital Database for Insider Trading Compliance regulations

In December 2018, SEBI came up with new sets of regulations requiring all listed companies to maintain digital database of Unpublished Price Sensitive Information sharing. In addition, there were lots of new compliance requirements came up and the responsibility is on Board of Directors to ensure complete compliance. Here is link to SEBI updated regulations SEBI (Prohibition of Insider Trading) Regulations, 2015.

Applicability of SEBI (Prohibition of Insider Trading) Regulation is fairly vast and it is mandatory for all of the businesses those are holding Unpublished Price Sensitive Information (UPSI) for any listed company is required to maintain digital database to comply with Insider Trading Regulations. While as per SEBI regulations the applicability of provision is for :

  • All Listed Companies
  • All Intermediaries registered with SEBI under section 12 of SEBI Act
  • Fiduciaries as per SEBI (Prohibition of Insider Trading) Regulations 2015

The list below gives categories to whom regulation is applicable:

  • Listed Companies
  • Banks
  • Investment Banks
  • Merchant Banks
  • NBFCs
  • Rating Agencies
  • Audit firms
  • Practicing Company Secretaries
  • Mutual Funds
  • Insurance Companies
  • Law Firms
  • Consultants

So if you in any of the above category its really must for you to ensure compliance with SEBI Insider Trading Regulations.

As per new amendment, SEBI has made additional compliances as below effective Apr 1, 2019:

  • All listed company and connected persons as defined under the regulation are required to maintain a structured digital database with adequate internal controls, containing name of person with whom UPSI is shared and nature of UPSI.
  • While sharing UPSI, listed company / intermediaries should serve a notice on, or sign a confidentiality/ non-disclosure agreement with, person with whom UPSI is shared, informing him/her that he/she has to ensure compliance of PIT Amendment Regulations while in possession of UPSI shared with him/her.
  • Maintaining a lists of all employees and other persons with whom unpublished price sensitive information is shared and confidentiality agreements shall be signed or notice shall be served to all such employees and persons

Volody’s Insider Trading Compliance Software (Volody PIT) is intelligent software designed for the company secretaries and compliance officers to monitor, track and ensure all the compliances related to Insider Trading as prescribed by Securities and Exchange Board of India (SEBI) vide

Be it trading on your own company shares or trading on restricted shares, our Insider Trading Software help you manage everything and make your organization fully compliant with SEBI Insider Trading Regulations.

Volody Insider Trading Compliance Software is designed to ensure complete compliance with SEBI regulations and gives complete peace to Board of Directors, Management and Compliance Officers responsible for compliances.

Features includes:

  • Database of all employee and their dependents
  • Holding statement of all employees and dependents
  • Restricted shares list

Blackout period / no-trading windows

While SEBI has given strict timeline by which companies to have a digital database in place effective Apr 1, 2019. SEBI has come out with few additional amendments recently to convincingly indicate that compliance of maintaining digital database is must.

Standardizing Reporting of violation relating to Code of Conduct – July 19, 2019

SEBI on July 19, 2019 came out with circular giving guidelines mentioned below with an objective to standardize the process relating to dealing with violations of the Code of Conduct, all listed companies, intermediaries and fiduciaries shall:

A. Report such violations by the designated persons and immediate relatives of designated persons in the standardized format to SEBI, as placed at Annexure A.

B. Maintain a database of the violation of code of conduct by designated persons and immediate relatives of designated persons that would entail initiation of appropriate action against them.

The provisions of this circular shall come into effect from the date of the circular.

Please find enclosed SEBI circular in this regard. Volody Insider Trading Compliance platform has created Violation Reporting forms in its software to provide you with holistic solution.

A : SEBI has relaxed restrictions on pledging of shares during Trading
Window Restriction as long as pledging of shares is for bona-fide purpose and its done after obtaining prior approval from Compliance Officer and in compliance with other regulations.

B : SEBI has relaxed restrictions on transaction which are undertaking in accordance with respective regulation made by the Board such as acquisition by conversion of warrants or debentures, subscribing to right issue, further public issue, preferrential allotment or tendering of shares in buy-back program, open offer or delisting of shares.

SEBI Insider Trading Regulations

As per new amendment, SEBI has made additional compliances as below effective Apr 1, 2019:

  • All listed company and connected persons as defined under the regulation are required to maintain a structured digital database with adequate internal controls, containing name of person with whom UPSI is shared and nature of UPSI.
  • While sharing UPSI, listed company / intermediaries should serve a notice on, or sign a confidentiality/ non-disclosure agreement with, person with whom UPSI is shared, informing him/her that he/she has to ensure compliance of PIT Amendment Regulations while in possession of UPSI shared with him/her.
  • Maintaining a lists of all employees and other persons with whom unpublished price sensitive information is shared and confidentiality agreements shall be signed or notice shall be served to all such employees and persons

Volody’s Insider Trading Compliance Software (Volody PIT) is intelligent software designed for the company secretaries and compliance officers to monitor, track and ensure all the compliances related to Insider Trading as prescribed by Securities and Exchange Board of India (SEBI) vide

Be it trading on your own company shares or trading on restricted shares, our Insider Trading Software help you manage everything and make your organization fully compliant with SEBI Insider Trading Regulations.

Volody Insider Trading Compliance Software is designed to ensure complete compliance with SEBI regulations and gives complete peace to Board of Directors, Management and Compliance Officers responsible for compliances.

Features includes:

  • Database of all employee and their dependents
  • Holding statement of all employees and dependents
  • Restricted shares list
  • Blackout period / no-trading windows
  • Trading plan
  •  
  • Systemic work-flow for all trading approvals, upload of broker notes and monthly demat statement
  • Escalation for non-compliances
  • Database with adequate internal controls, containing name of person and sharing of UPSI as required under SEBI regulation
  • Database of employees and other persons with whom UPSI is shared and confidentiality agreements signed
  • Centralized communication with all the users
  • Email & Notification alert
  • MIS, Dashboard
  • Audit trail and centralized data storage
  • Insider Trading regulations and internal policy
  • Reporting of compliance violation and maintaining violation database for reference.

Its available on-cloud as well as on-premise installation

Please reach-out at connect@volody.in or call us at 8080809301 for demo.

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