Clarification regarding trading restriction period

Apr 03, 2019 | by Avantis RegTech Legal Research Team


The National Stock exchange of India Limited (NSE) on April 02, 2019 has issued a Circular regarding clarification on trading restriction period.

Whereas Clause 4 of Schedule B of SEBI (Prohibition of Insider Trading) Regulations, 2015, which prescribes the Minimum Standards for Code of Conduct for Listed Companies to Regulate, Monitor and Report Trading by Designated Persons, was amended with effect from April 01, 2019, to include the following:

“Trading restriction period can be made applicable from the end of every quarter till 48 hours after the declaration of financial results.”

NSE discussed with SEBI and decided that, this amendment has to be read in conjunction with the existing provision of Clause 4 of the Schedule B (wherein compliance officer determines that a designated person or class of designated persons can reasonably be expected to have possession of unpublished price sensitive information). In any case, the trading restriction period is required to commence not later than end of every quarter till 48 hours after the declaration of financial results.

[Circular No. NSE/CML/2019/11]

Click here to download the Circular.

 


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