SEBI Insider Trading Regulations – Effective April 2019

Volody’s Insider Trading 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 SEBI (Prohibition of Insider Trading) Regulations, 2015.
Be it trading on your own company shares or trading on restricted shares, our
Insider Trading Software helps you manage everything and make your organization
fully compliant with SEBI Insider Trading Regulations.
Applicability of SEBI (Prohibition of Insider Trading) Regulation is fairly vast
and it is applicable to listed companies, banks, investment banks, NBFCs,
Auditors, Rating Agencies, Stock Exchanges, Clearing House, Registrars &
Transfer Agents, mutual funds, insurance companies, investment companies,
Internal Auditors, Practicing Company Secretaries.
So if you in any of the above category its really must for you to take Volody PIT
and ensure complete compliance with SEBI regulations.

Why Insider Trading Regulations 

SEBI, to protect the interest of all shareholders and especially minority shareholders
has set-out regulations wherein any person who is in possession of any unpublished
price sensitive information, cannot take advantage and benefit by trading in public
listed shares.
Considering instances of multiple violations of Insider trading regulations by
Insiders holding confidential information, availability of unpublished price
sensitive information (UPSI) on various private platforms including WhatsApp
chats, SEBI further tightens Insider Trading regulations by bringing in SEBI
(Prohibition of Insider Trading) (Amendment) Regulations, 2018.

As per the 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 the name of the 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, a 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 list 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 Insider Trading 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 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

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