The Securities and Exchange Board of India (SEBI) by a circular dated September 9, 2020 decided to extend the system driven disclosures, which were first introduced in December 2015, to the members of Promoter Group and Designated Person(s) of a listed Company in addition to the Promoter(s) and Director(s) of such Companies.
To begin with, the system driven disclosures shall pertain to trading in equity shares and equity derivative instruments, i.e., Futures and Options of the listed company (wherever applicable) by the entities.
Such disclosures shall be shared with the general public through the websites of Stock Exchanges with effect from October 01, 2020. In this respect, the Depositories and Stock Exchanges will have to make necessary arrangements for smooth implementation of the system driven disclosure process.
Furthermore, the new system would continue to run parallel with the existing system, i.e., the entities will continue to independently comply with the disclosure obligations under SEBI (Prohibition of Insider Trading) Regulations, 2015 as applicable to them, till March 31, 2021.
As presently done, the disclosures generated through the system will be displayed separately from the regular disclosures filed with the Exchanges by the Companies.
Steps/process required to be taken for implementation of this system driven disclosure process:
SEBI has specified the following steps/process that needs to be followed for the implementation of the system. In this respect, the various steps to be followed by the parties to the system such as listed companies, depositories and stock exchanges are as follows:
(A) Listed Companies
(B) Designated Depository
(C) Stock Exchange
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