The Securities and Exchange Board of India has clarified, the listed companies, mediators and trustees who handle unpublished price-sensitive information are required to maintain a digital database of persons and entities with whom such details are shared.
On July 5, the regulator revised its guidance note on insider trading norms to provide clarity on the requirement of maintaining a structured digital database of individuals. It also entities with whom UPSI is shared, and the scope of an investment company, according to a circular released by the market regulator on Monday. To remove certain difficulties in the interpretation or application of the provisions of the insider trading norms, the regulator released the guidance note.
The revised guidance says that the requirement to maintain the structured digital database, containing the names of such persons or entities with whom UPSI is shared, is applicable to listed companies, intermediaries and fiduciaries who handle UPSI of a listed company in the course of business operations.