Sebi mulls extending automated trading window closure to relatives of designated persons

Markets regulator Sebi connected Friday projected to widen the automated closure of trading model up of the declaration of fiscal results to the contiguous relatives of designated persons of listed companies. The move, if implemented, would forestall inadvertent non-compliance of insider trading rules, according to a consultation insubstantial floated by Sebi.

The markets regulator, successful August 2022, issued a model restricting trading by depository participants by mode of freezing the PAN astatine security level during the trading model closure period.

The freezing of the PAN astatine the information level is being carried retired by the banal exchanges and depositories based connected the accusation provided by the listed company.

Initially, this PAN frost model was made applicable for trading model closure connected relationship of declaration of fiscal results of listed companies that were portion of benchmark indices specified arsenic Nifty 50 and Sensex.

Subsequently, Sebi successful July 2023, extended the model to restrict trading by designated persons during the trading model closure period, to each listed companies, successful a phased manner.

In the archetypal phase, the model was made applicable to designated persons of each listed companies. This has reduced the compliance requirements of listed entities and eliminated inadvertent trading during trading model closure.

"Considering the effectual implementation of the framework, it is projected to widen the aforesaid model to contiguous relatives of designated persons," Sebi said successful its consultation paper. ...