July 20, 2020
Summary of the notification issued by SEBI on 17/07/2020
SEBI amends provisions with respect to Maintenance of Structured Digital Database by Listed Entities and inclusions to the Code of Conduct under SEBI’s Insider Trading Regulations.
Key highlights of the notification are as follows:
1. Structured Digital Database: The database shall –
a. capture the nature of unpublished price sensitive information shared along with the data points on the names of who have share and with whom it has been shared, with their PAN or other authorized identity information as already required by the regulations.
b. be maintained in-house and not outsourced, with adequate internal controls, audit trails etc. and for atleast 8 years after the completion of relevant transaction, which can be further extended in case of any investigation or enforcement proceeding.
2. Code of Conduct: The Code of Conduct formulated by the Boards of Listed Entities and the intermediaries shall be suitably amended to include the following revisions:
a. Any sum recovered under the Code, shall be remitted to the Board, which in turn shall deposit it to the IEPF account.
b. Any violation of the Code shall be promptly communicated to the Stock Exchanges (as against the Board, as per earlier provision), where the reporting company’s stocks are traded.
This notification is integrated in our free-to-use website ca2013.com for quick reference.
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