The Securities Exchange Board of India on 4th November, 2019 has published a set of frequently asked questions and clarifications on the Prevention of Insider Trading Regulations, 2015 (PIT).
The major clarifications on insider trading provided by SEBI in the FAQ include the following:
- No pre-clearance is required for employees for sale of shares obtained through employees’ stock options.
- The foreign nationals employed in Indian companies are required to follow the code of conduct while trading in American Depository Receipt (ADR) or Global Depository Receipt (GDR). The Trading in ADR or GDR by them is covered under provisions of PIT 2015.
- A company shall maintain in its Structured Digital Database, details of the intermediaries or fiduciaries including their names and Permanent Account Numbers (PAN) (other unique identifier authorized by law, in case PAN is not available).
- The company/ intermediary/ fiduciary shall collect details till date of service of such employees with the company and make efforts to maintain updated address and contact details of such persons for one year after resignation from service. Such data should be preserved for a period of 5 years.
Click here to read the Clarification
