The Securities Exchange Board of India (SEBI) on July 19, 2023, issued a circular regarding the Trading Window closure period under Clause 4 of Schedule B read with Regulation 9 of SEBI (Prohibition of Insider Trading) Regulations, 2015– Extending the framework for restricting trading by Designated Persons by freezing PAN at the security level to all listed companies in a phased manner
The following has been stated namely: -
• It states that in order to improve ease of doing business and prevent inadvertent non-compliance of provisions of PIT Regulations by DPs, SEBI issued Circular SEBI/HO/ISD/ISD-SEC-4/P/CIR/2022/107 dated August 05, 2022, laying down a framework for developing a system to restrict the trading by Designated Persons (DPs) by way of freezing the PAN at security level during Trading Window closure period.
• It states that the above framework is hereby extended to all the listed companies
• The procedure for implementation of the system is enclosed in Annexure-A. The flowchart for the same is enclosed in Annexure B.
• The Depositories and Stock Exchanges are directed to perform the following functions namely: -
(i) Take the necessary steps to implement this circular
(ii) bring the provisions of this circular to the notice of all listed companies and also disseminate the same on their websites.
• The Depositories shall submit the quarterly report to SEBI in the format placed in Annexure-C
• This circular is available on the SEBI website at www.sebi.gov.in under the Category “Legal Circulars”
[Circular No. SEBI/HO/ISD/ISD-PoD-2/P/CIR/2023/124]
