SEBI automates continual disclosures under PIT regulations; Physical disclosures to continue in certain cases

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  • Last Updated on 4 September, 2021

Prohibition of Insider Trading

[2021] 130 14 (Article)

SEBI, in its Board meeting dated June 25, 2020, discussed and approved necessary amendments1 in SEBI (Prohibition of Insider Trading) Regulations, 2015 (‘PIT Regulations’) that were notified vide gazette notification dated July 17, 2020. One of the amendments made pertained to the insertion of enabling power to prescribe a format for continual disclosures under PIT Regulations in order to mandate System Driven Disclosures (‘SDD’).

Earlier, in December 20153, SEBI had notified SDD in the first phase pertaining to acquisition/disposal of equity shares by promoters/promoter group based on specified thresholds under the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011 (‘SAST Regulations’) and PIT Regulations and pledge of equity shares by promoters/promoter group under the SAST Regulations. Thereafter, in May 20184 next phase of SDD was implemented for disclosure under Reg. 29(1) and 29(2) of SAST Regulations by non-promoters and continual disclosures under Reg. 7(2) of PIT Regulations for directors and employees. Refer Figure 1: Flow of events in relation to SDD.

Thereafter, SEBI vide circular dated September 09, 2020, superseded the aforesaid circulars dated December 01, 2015, December 21, 2016, and May 28, 2018, with respect to the implementation of SDDs under PIT Regulations and mandated SDD for trading in equity shares and equity derivative instruments i.e. Futures and Options of the listed company (wherever applicable) by the entities.

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