The Securities and Exchange of Board of India on 17th July 2020 has published the Securities and Exchange Board of India (Prohibition of Insider Trading) (Amendment) Regulations, 2020.
The Amendment is brought under Regulation 3 which deals with Communication or procurement of unpublished price sensitive information in which sub-regulation 5 has been substituted as followed.
The board of directors of the organisation of every person required to handle unpublished price sensitive information shall ensure that a structured digital database is maintained containing the nature of unpublished price sensitive information and the names of such persons who have shared the information and also the names of such persons with whom information is shared under this regulation along with the Permanent Account Number or any other identifier authorized by law where Permanent Account Number is not available.
Such a database shall not be outsourced and shall be maintained internally with adequate internal controls and checks such as time stamping and audit trails to ensure non-tampering of the database.
Further, the board of directors shall ensure that the structured digital database is preserved for a period of not less than eight years after completion of the relevant transactions.
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