SEBI Insider Trading Compliance – This is no more an option

SEBI imposes a penalty of Rs 22.7 cr for Insider Trading compliance violation

On Sep 23, 2019, SEBI passed an order, imposing a penalty of Rs. 22.7 crore on Aurobindo Pharma and its promoters for Insider Trading Compliance violation. While the violation happened in 2008 – 2009 but SEBI kept on investigating and finally, SEBI concluded with a penalty of 22.7 crores and the issue remains misuse of Unpublished Price Sensitive Information (UPSI) for personal gains.

This issue of protecting UPSI and preventing misuse of UPSI remains the genesis of SEBI order and the regulator has become stricter while investigating such cases. This is a wake-up call for all the Board Members, CEOs, CFOs, Compliance Officers & Company Secretaries to ensure handling all the price-sensitive information with due care and adhere to complete compliance with SEBI regulation.

While the Board Members trust CFOs, Compliance Officers and Company Secretaries for such compliances and its responsibility of Compliance Officers and Company Secretaries to create good compliance culture, spread awareness about SEBI regulations and move forward embracing technology to digitize various processes including adopting Board Meeting Software, Insider Trading Compliance Software, Secretarial Automation Software to prevent any possible violation.

Any such event like penalties etc results in loss of reputation, loss of trust & business and significant erosion of shareholders value.

Volody is an enterprise software product Company having Contract LifeCycle Management Software, Compliance Management Software, Insider Trading Compliance Software and Board Meeting Software for business globally.

Volody is catering to need of General Counsels, Compliance Officers and CEO Office helping them with enterprise software. Trusted by global corporates, law firms, Volody`s biggest strength is best in industry User Interface, flexible Workflows, and zero implementation cost. A complete solution allow businesses to not to engage multiple partners to implement enterprise-wide robust software like Contract LifeCycle Management, Compliance Management, and Board Meeting Management. Hosted on Microsoft Azure and enabled Docusign for electronic signatures to allow businesses to complete contract creation and execution seamless and paperless.

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

Features include:

  • 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 the 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.
Volody is a pioneer in Contract Lifecycle Management (CLM) software since 2016. Our innovative AI-powered software automates tasks, extracts insights, & improves efficiency. Volody has delivered exceptional results for numerous firms, including small businesses & Fortune 500 companies across the globe. In the fast-paced world of CLM software, Volody stands as a consistent innovator & a partner you can trust.