Revision of Disclosure Format under Prohibition of Insider Trading Regulations by SEBI

Recently, SEBI, by way of the powers provided under the provisions of section 11 (1) of the SEBI Act 1992, together with the rule 4 (3) and 11 of the Prohibition of Insider Trading Regulations, have passed a Circular No. SEBI/ HO/ ISD/ ISD/ CIR/ P/ 2021/ 19, on 09.02.2021. The said circular deals with the Revision of Disclosure Format under Prohibition of Insider Trading Regulations.

Also, it shall be considerate to take into consideration that the said amendment has been made under Rule 7 of the SEBI (Prohibition of Insider Trading) Regulations 2015, which were notified by way of Circular No CIR/ ISD/ 01/ 2015 and CIR/ ISD/ 02/ 2015, issued on 11.05.2015 and 16.09.2015 respectively.

Purpose for Revision of Disclosure Format under Prohibition of Insider Trading Regulations

The purpose behind the Revision of Disclosure Format under Prohibition of Insider Trading Regulations are as follows:

• To Protect Investors Interest;
• To Promote Development of Securities Market;
• To Regulate Securities Market;

Also, Read: Key Changes Made in SEBI (Amendment) Regulations 2021

Reasons for Revision of Disclosure Format under PIT Regulations

The main reasons behind the revision of Disclosure Format under PIT Regulations can be summarised as:

• Inclusion of Member of the Promoter Group and Designated Person as Employee, and;
• Feedback received from the Market Participants and Recognised Stock Exchanges;

Things to Remember regarding Revision of Disclosure Format

The things to remember regarding the revision of disclosure format are as follows:

• Except for Form B to D (which are amended), all the conditions prescribed in the regulations will remain the same and unchanged;
• All the Recognised Stock Exchanged need to bring the same in the notice of the listed companies, and;
• All the Recognised Stock Exchanged need to disseminate about the same on their websites as well;

Conclusion

In a nutshell, the Revision of Disclosure Format under Prohibition of Insider Trading Regulations by SEBI was made based on the feedback received from the Market Participants and Recognised Stock Exchanges and due to the inclusion of Member of the Promoter Group and Designated Person as Employee.

In case of any other doubt or query, contact to Swarit Advisors, our proficient and well experienced Chartered Accountants will solve out all the issues concerning SEBI Advisory.

Official SEBI Circular on Revision of Disclosure Format

Also, Read: Annual Compliance for a Listed Company as per SEBI Regulations