• UGI USER
  • Jun 27, 2024
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SEBI EASES TRADING PLAN NORMS FOR INSIDERS

Why in the news?

  • The Securities and Exchange Board of India (SEBI) has amended the Prohibition of Insider Trading regulations, simplifying trading for insiders in their companies.
  • These new norms will come into effect after three months, providing more flexibility in the trading plans of key managerial personnel.
Source: Geeks for geeks

Key Changes in Regulations

  • The cooling-off period for trading plans has been reduced from six months to four months.
  • The amended norms include a price limit of 20% on both the upper and lower sides and allow for the cancellation of the trading plan.

Who are Insiders?

  • Insiders in insider trading are individuals with access to unpublished price-sensitive information (UPSI) about a company.
  • This typically includes key managerial personnel, senior management, directors, and others who can influence or have knowledge of confidential company information.
About Security and Exchange Board of India (SEBI)

  • SEBI is a statutory body established on April 12, 1992, under the SEBI Act, 1992.
  • Its primary functions are to protect investor interests, promote, and regulate the securities market.

How SEBI Came into Existence?

  • Before SEBI, the Controller of Capital Issues was the regulatory authority, based on the Capital Issues (Control) Act, 1947.
  • SEBI was formed in April 1988 as a non-statutory body and became autonomous with statutory powers under the SEBI Act, 1992.

Headquarters and Regional Offices

  • SEBI’s headquarters is in Mumbai.
  • Regional offices are located in Ahmedabad, Kolkata, Chennai, and Delhi.

Associated Article:

https://universalinstitutions.com/sebis-proposed-changes-to-insider-trading-provisions/