TMI BlogDefinitionsX X X X Extracts X X X X X X X X Extracts X X X X ..... nd regulatory compliance under these regulations and who shall be responsible for compliance of policies, procedures, maintenance of records, monitoring adherence to the rules for the preservation of unpublished price sensitive information, monitoring of trades and the implementation of the codes specified in these regulations under the overall supervision of the board of directors of the listed company or the head of an organization, as the case may be; 1 [Explanation For the purpose of this regulation, financially literate shall mean a person who has the ability to read and understand basic financial statements i.e. balance sheet, profit and loss account, and statement of cash flows. ] (d) connected person means,- (i) a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ic financial institution as defined in section 2 (72) of the Companies Act, 2013; or (h). an official or an employee of a self-regulatory organization recognised or authorized by the Board; or (i). a banker of the company; or (j). a concern, firm, trust, Hindu undivided family, company or association of persons wherein a director of a company or his immediate relative or banker of the company, has more than ten per cent. of the holding or interest; NOTE: It is intended that a connected person is one who has a connection with the company that is expected to put him in possession of unpublished price sensitive information. Immediate relatives and other categories of persons specified above are also presumed to be connected persons ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nnected person; or ii) in possession of or having access to unpublished price sensitive information; NOTE: Since generally available information is defined, it is intended that anyone in possession of or having access to unpublished price sensitive information should be considered an insider regardless of how one came in possession of or had access to such information. Various circumstances are provided for such a person to demonstrate that he has not indulged in insider trading. Therefore, this definition is intended to bring within its reach any person who is in receipt of or has access to unpublished price sensitive information. The onus of showing that a certain person was in possession of or had access to unpublished price se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts thereto; (l) trading means and includes subscribing, 6 [ redeeming, switching, ] buying, selling, dealing, or agreeing to subscribe, 7 [ redeem, switch, ] buy, sell, deal in any securities, and trade shall be construed accordingly ; NOTE: Under the parliamentary mandate, since the Section 12A (e) and Section 15G of the Act employs the term 'dealing in securities', it is intended to widely define the term trading to include dealing. Such a construction is intended to curb the activities based on unpublished price sensitive information which are strictly not buying, selling or subscribing, such as pledging etc when in possession of unpublished price sensitive information. (m) trading day means a day on which ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d to them in those legislation. ******** Notes 1. Inserted vide SEBI/LAD-NRO/GN/2018/59 Dated 31-12-2018 w.e.f. 01-04-2019 2. Substituted vide SEBI/LAD-NRO/GN/2018/59 Dated 31-12-2018 w.e.f. 01-04-2019 before it was read as 2009 3. Inserted vide SEBI/LAD-NRO/GN/2018/59 Dated 31-12-2018 w.e.f. 01-04-2019 4. Omitted vide SEBI/LAD-NRO/GN/2018/59 Dated 31-12-2018 w.e.f. 01-04-2019 before it was read as (vi) material events in accordance with the listing agreement. 5. Omitted vide Notification No. SEBI/LAD-NRO/GN/2022/108 dated 24-11-2022 before it was read as, except units of a mutual fund 6. Inserted vide Notification No. SEBI/LAD-NRO/GN/2022/108 dated 24-11-2022 7. Inserted vid ..... X X X X Extracts X X X X X X X X Extracts X X X X
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