Professional Documents
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Analysis of
07.01.2013 | Session II Provisions,
SEBI Prohibition of Insider Trading Offences
Regulations
&
By
MANOJ KUMAR Penalties
Assistant Vice President
Corporate Professionals Capital Private Limited
Agenda
• Key Terms
• Direction by SEBI
• Disclosures to be made
Any Person
Who
(i) OR
is was
connected with the company
OR
deemed to have been connected with the company
AND
OR
(ii)
Has Received OR Has Had Access
TO
UNPUBLISHED PRICE SENSITIVE INFORMATION
CONNECTED PERSON
Any Person
Who
or or Professional Business
an officer an employee
relationship relationship
“CONNECTED PERSON”
6 Shall mean
any person
who is a connected person
6 6 SIX MONTHS
6
PERSON DEEMED TO BE CONNECTED -REGULATION 2(h)
MB, STA, RTA, DT, Broker, sub-broker, PM, IA, IC, or employee;
Any Concern / Firm / trust / HUF/ Company / AOP in which connected person or person
mentioned in clause (vi), (vii) or (viii) of this clause
Have More than 10% of the holding or Interest
What Is Price Sensitive
Information ?????
PRICE SENSITIVE INFORMATION-
REGULATION 2(ha)
Price Sensitive Information means:
AND
which if published is likely to
Revisions in Ratings.
PRICE SENSITIVE INFORMATION- AS
PER CLAUSE 36 LISTING AGREEMENT
Any other information having bearing on the
operation/ performance of the Company as well
as price sensitive information which includes but
not restricted to;
• Change in market lot / sub-division ;
• Voluntary delisting by the company ;
• Forfeiture of shares;
• Alteration in terms of any securities ;
• Information regarding securities issued abroad ;
• Cancellation of dividend/ rights/ bonus etc.
OFFICER OF A COMPANY – REGULATION 2(g)
OFFICER OF A
COMPANY
Means Includes
Explanation
Speculative reports in print or electronic
media shall not be considered as published
information.
DEALING IN SECURITIES -
REGULATION 2(d)
“Dealing In Securities” means
an act of Subscribing, Buying, selling
or
agreeing to subscribe, buy, sell
or deal in any securities
by any person
either
as principal or agent;
PROHIBITION ON
DEALING, COMMUNICATING OR
COUNSELLING
PROHIBITION ON INSIDER-REGULATION 3
NO INSIDER
shall
Either on his own behalf or On Other’s behalf
Directly or Indirectly
Ordinary course of
business, OR
Profession, OR
Employment, OR
NO COMPANY
SHALL
Deal in Securities of
Associate of that
Other company or other company
WHEN
IN POSSESSION OF ANY
The decision of
Proper arrangement in place to
transaction or agreement
block the dissemination of
was not taken by officer or employee
UPSI; AND
of the company who is in possession
of UPSI; AND
The acquisition was in
line with the SEBI
Takeover Regulations
On
To provide Findings to Shall Reply
Conclusion
all suspected within 21
Report to
assistance person days
Board
Board will
Issue
directions
DIRECTIONS BY SEBI
REGULATION 6 to 9
Not to deal in securities ;
Client Companies for which any assignment or appraisal report or credit rating
assignments are going on.
Any security which is purchased or sold by the organisation / firm on behalf of its
clients / schemes of mutual funds, etc. shall be put on the restricted / grey list.
Manoj Kumar
Assistant Vice President
Corporate Professionals Capital Private Limited
D-28, South Extension –I, New Delhi-110 049
Ph: +91.11.40622200; Fax: +91.11.40622201;
E: Manoj@indiacp.com | M: +91.9910688433