Never miss a great news story!
Get instant notifications from Economic Times
AllowNot now

You can switch off notifications anytime using browser settings.
Stock Analysis, IPO, Mutual Funds, Bonds & More

Sebi issues clarifications on PIT Regulations

​The regulator has also clarified that no pre-clearance is required for exercising employee stock options.

Nov 04, 2019, 10.06 PM IST
New Delhi: Listed Indian firms' employees, including foreign nationals, are required to follow the code of conduct while trading in American Depositories Receipts and Global Depositories Receipts, capital market regulator Sebi said on Monday.

Trading in such depository receipts is covered under the Prohibition of Insider Trade (PIT) Regulations, Sebi clarified.

"For such disclosures by such designated persons, a unique identifier analogous to PAN may be used," the regulator said in a list of frequently asked questions on PIT Regulations.

Further, the capital markets regulator said that a firm upon resignation of designated person, should make efforts to update address and contact details of such designated persons for one year after resignation and should preserve the data for five years.

In case the designated person is a fiduciary or intermediary, the company shall maintain its name, permanent account number (PAN) or other unique identifier in its digital database.

The fiduciary or intermediary, in turn, shall maintain a list of persons and their PAN with whom they have shared the unpublished price sensitive information of the firm.

The regulator has also clarified that no pre-clearance is required for exercising employee stock options.

Also Read

Sebi issues operational guidelines for FPIs

Geojit says not under any Sebi probe

Hear Bajaj Finance plea: SAT to Sebi

New Sebi framework to boost depository receipts

Add Your Comments
Commenting feature is disabled in your country/region.
Download The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.

Other useful Links

Follow us on

Download et app

Copyright © 2019 Bennett, Coleman & Co. Ltd. All rights reserved. For reprint rights: Times Syndication Service