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Amendment of Guidance Note on SEBI (Prohibition of Insider Trading) Regulations 2015

News and Press Release - Dated:- 13-4-2016 - Guidance Note on SEBI (Prohibition of Insider Trading) Regulations, 2015 ( PIT Regulations ) was issued on August 24, 2015 under regulation 11 of the PIT Regulations providing guidance to the market to remove certain difficulties in the interpretation or application of the provisions of the regulations. The Guidance Note interalia stated that buy back offers, open offers, rights issues, FPOs, bonus, etc. of a listed company are available to designated .....

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effect from February 17, 2016 to clarify that exit offer is also exempted from the restriction on contra trade under the PIT Regulations. The text of the amended Guidance Note is available on the SEBI website www.sebi.gov.in Mumbai April 12, 2016 Guidance Note on SEBI (Prohibition of Insider Trading) Regulations, 2015. [August 24th, 2015] SEBI (Prohibition of Insider Trading) Regulations, 2015 ( the Regulations ) were notified vide notification dated 15th January, 2015. The regulations came into .....

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restriction (for a period not less than six months) under clause 10 of Schedule B of the Regulations also apply to the exercise of ESOPs and the sale of shares so acquired? Guidance: Exercise of ESOPs shall not be considered to be trading except for thepurposes of Chapter III of the Regulations. However, other provisions of the Regulations shall apply to the sale of shares so acquired. For Example: (i) If a designated person has sold/ purchased shares, he can subscribe and exercise ESOPs at any .....

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the sale will not be a contra trade but will be subject other provisions of the Regulations, however, he will not be able to sell the shares purchased on August 01, 2015 during the period of six months from August 01, 2015. (iv) Where a designated person sells shares (say on August 01, 2015), acquires shares later under an ESOP (say on September 01, 2015) the acquisition under ESOP shall not be a contra trade. Further, he can sell/pledge shares so acquired at any time thereafter without attract .....

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ntract that is cash settled on expiry shall be considered to be a contra trade. Trading in index futures or such other derivatives where the scrip is part of such derivatives, need not be reported. 3. Whether contra trade is allowed within the duration of the trading plan? Guidance: Any trading opted by a person under Trading Plan can be done only to the extent and in the manner disclosed in the plan, save and except for pledging of securities (Refer question 6). 4. Whether the restriction on ex .....

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pply to the designated employees of market intermediaries and other persons who are required to handle UPSI in the course of business operations? Guidance: The code prescribed by the Regulations is same for listed companies, market intermediaries and other persons who are required to handle UPSI in the course of business operations. Therefore, restrictions with regard to contra trade forming part of clause 10 of code of conduct shall apply to all according to the Regulations. PLEDGE: 6. (a) Whet .....

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ge / revoke transaction for the purpose of disclosure? Is it the market value on date of the pledge / revoke transaction or is it the value at which the transaction has been carried out between the pledgor and pledgee? For instance, if the pledgor has availed a loan of ₹ 10 Lacs against which he has pledged shares worth ₹ 15 Lacs, would the transaction value be ₹ 10 Lacs or ₹ 15 Lacs. Guidance: For the purpose of calculation of threshold for disclosures relating topledge .....

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