Securities and Exchange Board of India (“SEBI”), vide a Circular dated July 19, 2019, has notified a standardized Format for all listed companies, intermediaries and fiduciaries to report violation of the code of conduct for designated persons and their immediate relatives. The entities are also required to maintain a database of the violation of such code of conduct by designated persons and their immediate relatives.
As per Regulation 9 of the SEBI Prohibition of Insider Trading Regulations, 2015, Board of Directors of every listed company and the Board of Directors or head of the organization of every intermediary and fiduciary are required to formulate a code of conduct for designated persons and their immediate relatives. Compliance of the Code must be monitored and any violation is required to be reported to SEBI promptly.
In compliance with the requirement under Regulation 9, many reports were received by SEBI. However, incomplete and inadequate details were provided regarding the violations. This Circular has been released with an objective to standardize the process relating to dealing with violation of code of conduct by every intermediary and fiduciary, all listed companies, intermediaries and fiduciaries. The format for ‘Report for violations related to Code of Conduct under SEBI PIT Regulations’ has been provided as Annexure A appended to the Circular.
Click here to see circular.
