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Sebi to roll out system-driven disclosures for promoter group members, designated persons of cos


NEW DELHI: Markets regulator Sebi in Wednesday decided to apply system-driven disclosures for participants of promoter group, owners plus designated persons of a listed company.

To begin with, the particular system-driven disclosures will pertain to trading in equity shares and equity derivative instruments — futures and options — of the listed company by these entities, Sebi said in the circular.

The system-driven disclosures in the securities market had been first introduced in December 2015 and are being implemented in the phased manner.

“It has been decided to apply the system-driven disclosures for member(s) of promoter group and designated person(s) moreover to the promoter(s) plus director(s) of company…within the PIT Regulations,” Sebi said.

The depositories plus stock exchanges will have to make necessary arrangements in a way that the disclosures pertaining to PIT (Prohibition of Insider Trading) norms are displayed on the websites of respected bourses from October 1.

It further said the newest system would continue to run parallel with the present system, wherein entities is going to continue to independently stick to the disclosure obligations underneath PIT norms as pertinent to them, till 03 31, 2021.

As at the moment done, the disclosures produced through the system will be exhibited separately from the regular disclosures filed with the exchanges.

The regulator has specified procedure that needs to be put into practice for the implementation of the system.

Under the process, some sort of listed company will provide the info such as PAN of promoter, including members of the particular promoter group, designated persons and director in the file format and manner prescribed because of the depositories.

Further, for PAN-exempt entities, the investor’s demat account number will be specific by the listed company. These information will be provided inside of 10 days.

The designated depository will share the info received from the listed corporation with other depository. The designated depository will also share with the particular stock exchanges, company-wise facts of entities.

The safety deposit will provide the data pertaining to the tagged demat account(s) separately to the inventory exchanges on a daily basis.

The info should be related to specifics about transactions on pledge, annulment, invocation of shares along with other encumbrances of the choices, off-market transactions, corporate activities such as ESOPs, bonus, plus rights of the choices.

Based on the PAN details provided by the depositories, every day, exchanges will identify the particular transactions carried out troubles trading system by the choices in the equities and collateral derivative instruments of the particular listed company.

Each swap will consolidate the information of the transactions identified by means of them as well as received from the other boursesand depositories.

On debt consolidation of the transactions, in case the disclosure is triggered within the insider trading norms, the particular exchanges will disseminate the exact same on their websites.

The financial transaction carried out on T-day will be disseminated on T+2 day basis. T-day holds for trading day.

In July, Sebi amended insider trading norms, wherein outlined entities will have to sustain a structured digital database comprising unpublished price-sensitive information, what they are called of persons who have provided the information, automation of the method of filing disclosures to stock exchanges, and stops on trading window.

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