SEBI Proposes Amendments To Insider Trading And Disclosure Regulations

The Securities and Exchange Board of India has proposed a review of the definition of Unpublished Price Sensitive Information under SEBI Prohibition of Insider Trading Regulations. This has been done to bring greater clarity and uniformity of compliance in the ecosystem, it said.

The markets regulator put out the consultation paper on Nov. 9 and the paper will remain open for comments till Nov. 30. The review and proposals have been made with the broader intention of curbing insider trading. The proposals call for better disclosure of relevant changes and information regarding the asset management company.

One of the relevant proposals is the disclosure of "agreements, by whatever name called, impacting the management and control of the company", according to the paper. The company is also proposed to disclose managerial details like changes in personnel along with any action that is initiated against any key personnel by enforcement authority or judicial body.

Any fraud or defaults by a listed entity, arrest of key managerial personnel or others needs to be disclosed, according to the proposal. Changes that are proposed also include the disclosure in any change of capital structure. This means that the certain outlined information from board meetings needs to be disclosed to the stock exchange within 30 minutes. Any sort of agreements that have been proposed internally along with agreements with third parties are proposed to be disclosed.

There are a few other changes that have been proposed, like the settlement of loans, rejection or approval of insolvency, outcome of disputes and status of licences. These proposed changes aim to ensure that the workings of the AMC is better disclosed to the public. The changes have been proposed across various facets of the working of an AMC, including change in key personnel, administrative or structural changes and any reports of actions that have been taken against the AMC.