September 10, 2020
Summary of the Circular issued by SEBI on 09/09/2020
Automation of Continual Disclosures under Regulation 7(2) of SEBI (Prohibition of Insider Trading) Regulations, 2015 with effect from October 01, 2020
SEBI has notified the process to be carried out by the Listed Companies, Depositories and Stock Exchanges to facilitate automation of disclosure of trading in equity shares and equity derivative instruments, namely, Futures and Options, of the Listed Company carried out by the members of its promoter group, directors and designated persons so that disclosures pertaining to PIT Regulations are disseminated on the websites of respective stock exchanges, in a system driven manner.
Listed companies shall provide within 10 days from the date of this circular necessary information including PAN number of the specified persons as per PIT Regulations to the designated depository, based on which the stock exchanges shall identify and consolidate transactions in their associated Demat accounts such as off market transactions, corporate actions such as ESOPs, Bonus etc. as specified in the circular. Disclosure threshold, if triggered, the exchanges shall disseminate the same on their websites.
The existing system where entities comply with the disclosure obligations under PIT Regulations as applicable to them, shall run alongside the new norms till March 31, 2021.