Executive Summary:
This document contains the Securities and Exchange Board of India (SEBI) Prohibition of Insider Trading Second Amendment Regulations, 2020. It amends the 2015 regulations concerning insider trading. The regulations came into force on October 29, 2020, the date of their publication in the Official Gazette.
Key Points / Main Content:
* **Amendment Title:** Securities and Exchange Board of India Prohibition of Insider Trading Second Amendment Regulations, 2020.
* **Effective Date:** October 29, 2020.
* **Amendments to the 2015 Regulations:**
* **Regulation 7A (Voluntary Information Disclosure):**
* An explanation is inserted to clarify that information is considered timely only if no more than three years have passed since the first alleged trade constituting a violation of insider trading laws.
* **Schedule D (Voluntary Information Disclosure Form):**
* In the note, "securities laws" is replaced with "insider trading laws."
* In Part III, Clause 1, "securities laws" is replaced with "insider trading laws."
* Clause 9 is substituted, requiring a detailed description of how the submitted information constitutes a violation of insider trading laws, including:
* Details of the securities involved.
* Unpublished price-sensitive information (UPSI).
* Date the UPSI was made public.
* Evidence of UPSI possession by alleged violators.
* Details of insiders/suspects and their trades (purchase/sale, quantity, dates/period).
* In Clause 10, self-certified copies of all relevant documents must be included.
Impact Analysis:
* **Informants/Whistleblowers:**
* Impact: Need to ensure that the information provided in the Voluntary Information Disclosure Form is timely (within three years of the alleged violation) and detailed as per the amended requirements in Schedule D.
* Action Required: Adhere to the new requirements for detailing the violation of insider trading laws and providing self-certified documents.
* **Securities and Exchange Board of India (SEBI):**
* Impact: SEBI will use the amended regulations to assess the timeliness and completeness of information received through the Voluntary Information Disclosure Form.
* Action Required: Enforce the amended regulations when receiving and processing Voluntary Information Disclosure Forms related to insider trading.
* **Alleged Violators of Insider Trading Laws:**
* Impact: Information disclosed about them must adhere to new standards.
* Action Required: They must be aware of the amended regulations to understand their rights and potential liabilities in the context of disclosed information.
Key Entities Referenced
Securities and Exchange Board of India (SEBI): A regulatory body for securities markets in India.
Securities and Exchange Board of India Act, 1992: The Act establishing and defining the powers of SEBI.
Securities and Exchange Board of India Prohibition of Insider Trading Regulations, 2015: Regulations established by SEBI to prevent insider trading.
Securities and Exchange Board of India Prohibition of Insider Trading Second Amendment Regulations, 2020: Amendments to the 2015 regulations regarding insider trading.
Official Gazette: The official government publication for notifications and regulations.
Mumbai, Maharashtra: The city and state where the SEBI notification was issued.
Ajay Tyagi: Chairman of the Securities and Exchange Board of India (SEBI).
Voluntary Information Disclosure Form: Form to be submitted to SEBI to report insider trading violations.
रजिस्ट्री स.ं डी.एल.- 33004/99 REGD. No. D. L.-33004/99
सी.जी.-एम.एच.-अ.-29102020-222818
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असाधारण
EXTRAORDINARY
भाग III—खण् ड 4
PART III—Section 4
प्राजधकार स ेप्रकाजित
PUBLISHED BY AUTHORITY
स.ं 455] िई ददल्ली, बृहस्ट्प जतिार, अक्त बू र 29, 2020/कार्तकड 7, 1942
No. 455] NEW DELHI, THURSDAY, OCTOBER 29, 2020/KARTIKA 7, 1942
भारतीय प्रजतभजू त और जिजिमय बोडड
अजधसचू िा
मुम्बई, 29 अक्त ूबर, 2020
भारतीय प्रजतभजू त और जिजिमय बोडड (अतं रंग व्यापार का प्रजतषधे )
(दसू रा सशं ोधन) विजियम, 2020
स.ं सबे ी/एलएडी-एनआरओ/जीएन/2020/38.—बोडड, भारतीय प्रजतभूजत और जिजिमय बोडड अजधजियम, 1992
(1992 का 15) की धारा 11 की उप-धारा (2) के खंड (छ) और धारा 12क के खंड (घ) एि ं खंड (ङ) के साथ पठित धारा
30 के तहत प्रदत्त िजियों का प्रयोग करते हुए, एतद्द्वारा भारतीय प्रजतभूजत और जिजिमय बोडड (अंतरंग व्यापार का
प्रजतषेध) जिजियम, 2015 का संशोधन करन े के वलए जिम्नजलजखत जिजियम बिाता ह,ै अथाडत:् -
1. इि जिजियमों को भारतीय प्रजतभूजत और जिजिमय बोडड (अंतरंग व्यापार का प्रजतषेध) (दसू रा संशोधन) जिजियम,
2020 कहा िा सकेगा ।
2. िे राजपत्र म ें उनके प्रकाशन की तारीख को प्रिृत्त (लाग)ू होंगे ।
3. भारतीय प्रजतभूजत और जिजिमय बोडड (अंतरंग व्यापार का प्रजतषेध) जिजियम, 2015 म,ें -
I. जिजियम 7क म,ें उप-विवनयम (1) म,ें खंड (ज) म,ें उप-खंड (iii) के पश्चात,् वनम्नवलवखत स्पष्टीकरण
अंतःस्थावपत ककया जाएगा, अथाात-्
5273 GI/2020 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART III—SEC. 4]
“स्पष्टीकरण.- यह तभी समझा जाएगा कक सूचना समय रहते दी गई ह,ै जब बोडा को पूरी तरह स े भरा
गया स्िैवछिक सूचना प्रकटीकरण फॉमा (िॉलेन्टरी इन्फॉमेशन वडस््लोज़र फॉमा) प्राप्त होने की तारीख
को, उस तारीख स े तीन िर्षों स े ज्यादा की अिवध न बीती हो वजस तारीख को कवथत तौर पर पहली
बार ऐसा ट्रेड ककया गया वजससे अंतरंग व्यापार (इनसाइडर ट्रेडडंग) संबंधी कानूनी प्रािधानों का
उल्लघं न हुआ हो ।”
II. अनुसूची-घ में,-
i. टटप्पणी में, शब्दों तथा वचह्नों “प्रवतभूवत विवधयों (वस्यूटरटीज़ लॉज़)” के वलए, शब्द तथा वचह्न
“अंतरंग व्यापार (इनसाइडर ट्रेडडंग) संबंधी कानूनी प्रािधानों” प्रवतस्थावपत हो जाएंगे;
ii. सारणी म,ें भाग III म,ें -
क. खंड 1 म,ें शब्दों तथा वचह्नों “प्रवतभूवत विवधयों (वस्यूटरटीज़ लॉज़)” के वलए, शब्द तथा
वचह्न “अंतरंग व्यापार (इनसाइडर ट्रेडडंग) संबंधी कानूनी प्रािधानों” प्रवतस्थावपत हो जाएंगे;
ख. खंड 9 के वलए, वनम्नवलवखत प्रवतस्थावपत हो जाएगा, अथाात,् -
“9. कृपया विस्तार स े उल्लेख करें कक आपन े जो सूचना प्रस्तुत की ह ैउससे यह कैसे पता चलता
ह ै कक अंतरंग व्यापार (इनसाइडर ट्रेडडंग) संबंधी कानूनी प्रािधानों का उल्लंघन हुआ ह,ै और
इसके साथ-साथ वनम्नवलवखत के संबंध में भी सूचना दी जाए:
(i) उन प्रवतभूवतयों (वस्यूटरटीज़) के ब्यौरे, वजनम ें कवथत तौर पर अंतरंग व्यापार
(इनसाइडर ट्रेडडंग) ककया गया;
(ii) िह अप्रकावशत कीमत संिेदनशील जानकारी, वजसके आधार पर कवथत तौर पर अंतरंग
व्यापार (इनसाइडर ट्रेडडंग) ककया गया;
(iii) िह तारीख, जब अप्रकावशत कीमत संिेदनशील जानकारी जनता के वलए उपलब्ध कराई
गई;
(iv) उन पटरवस्थवतयों के ब्यौरे/िह सबूत वजससे यह पता चलता हो कक कवथत तौर पर
उल्लघं न करन े िाले व्यवि (व्यवियों) के पास (के कब्ज े म)ें अप्रकावशत कीमत
संिेदनशील जानकारी थी;
(v) अंतरंग व्यवियों (इनसाइडर)/संकदग्ध व्यवियों और उनके ट्रेड [अथाात ् खरीद/वबक्री और
ककतनी खरीद/वबक्री की गई] के साथ-साथ दकए गए ट्रेड की तारीखों/अिवध के ब्यौरे ।”
ग. खंड 10 म,ें शब्दों तथा वचह्न “आधाटरत ह?ै ” के पश्चात,् शब्द तथा वचह्न “कृपया सभी
संबंवधत दस्तािेजों की स्ि-प्रमावणत प्रवतयााँ शावमल करें ।” अंतःस्थावपत ककए जाएंगे ।
अिय त्यागी, अध्यक्ष
[जिज्ञापि-III/4/असा./320/2020]
पाद ठिप्पण :
1. भारतीय प्रजतभूजत और जिजिमय बोडड (अंतरंग व्यापार का प्रजतषेध) जिजियम, 2015, स.ं एल.ए.डी./एि.
आर.ओ./िी.एि./2014-15/21/85 द्वारा, 15 िििरी 2015 को भारत के रािपत्र में प्रकाजित हुए थे ।
2. भारतीय प्रजतभूजत और जिजिमय बोड ड (अंतरंग व्यापार का प्रजतषेध) जिजियम, 2015 तत्पश्चात्, -
i. 31 कदसम्बर, 2018 को भारतीय प्रजतभूजत और जिजिमय बोडड (अंतरंग व्यापार का प्रजतषेध)
(संशोधन) जिजियम, 2018, सं. सेबी/एल.ए.डी.-एि.आर.ओ./िी.एि./2018/59, द्वारा[भाग III—खण् ड 4] भारत का रािपत्र : असाधारण 3
ii. 21 जनिरी, 2019 को भारतीय प्रजतभूजत और जिजिमय बोड ड (अंतरंग व्यापार का प्रजतषेध)
(संशोधन) जिजियम, 2019, सं. सेबी/एलएडी-एि.आर.ओ./िी.एि./2019/02, द्वारा
iii. 25 जुलाई, 2019 को भारतीय प्रजतभूजत और जिजिमय बोड ड (अंतरंग व्यापार का प्रजतषधे ) (दसू रा
संशोधन) जिजियम, 2019, स.ं सेबी/एल.ए.डी.-एि.आर.ओ./िी.एि./2019/23, द्वारा
iv. 17 जसतम्बर, 2019 को भारतीय प्रजतभूजत और जिजिमय बोडड (अतं रंग व्यापार का प्रजतषेध) (तीसरा
संिोधि) जिजियम, 2019, सं. सेबी/एल.ए.डी.-एि.आर.ओ./िी.एि./2019/32, द्वारा
v. 17 जुलाई, 2020 को भारतीय प्रजतभूजत और जिजिमय बोड ड (अंतरंग व्यापार का प्रजतषेध) (संिोधि)
जिजियम, 2020, सं. सेबी/एलएडी-एिआरओ/िीएि/2020/23, द्वारा
संशोवधत हुए थ े।
SECURITIES AND EXCHANGE BOARD OF INDIA
NOTIFICATION
Mumbai, the 29th October, 2020
SECURITIES AND EXCHANGE BOARD OF INDIA (PROHIBITION OF INSIDER TRADING)
(SECOND AMENDMENT) REGULATIONS, 2020
No. SEBI/LAD-NRO/GN/2020/38.—In exercise of the powers conferred under section 30 read
with clause (g) of sub-section (2) of section 11 and clauses (d) and (e) of section 12A of the Securities and
Exchange Board of India Act, 1992 (15 of 1992), the Board hereby makes the following regulations to
amend the Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015,
namely: –
1. These regulations may be called the Securities and Exchange Board of India (Prohibition of Insider
Trading) (Second Amendment) Regulations, 2020.
2. They shall come into force on the date of their publication in the Official Gazette.
3. In the Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015, ─
I. in regulation 7A, in sub-regulation (1), in clause (h), after sub-clause (iii), the following explanation
shall be inserted, namely-
“Explanation. – Information shall be considered timely, only if as on the date of receipt of the duly
completed Voluntary Information Disclosure Form by the Board, a period of not more than three
years has elapsed since the date on which the first alleged trade constituting violation of insider
trading laws was executed.”;
II. in Schedule D,
i. in the note, for the words “securities laws”, the words “insider trading laws” shall be
substituted;
ii. in the table, in the part III,
a. in clause 1, for the words “securities laws”, the words “insider trading laws” shall be
substituted;
b. for clause 9, the following shall be substituted, namely, -
“9. Please describe in detail how the information submitted by you constitutes a violation of
insider trading laws. The details must include specific information with respect to:
(i) details of the securities in which insider trading is alleged;
(ii) the unpublished price sensitive information based on which insider trading is
alleged;
(iii) date on which the unpublished price sensitive information was made public;4 THE GAZETTE OF INDIA : EXTRAORDINARY [PART III—SEC. 4]
(iv) details of circumstances/evidence leading to possession of unpublished price
sensitive information by the alleged violator(s);
(v) details of insiders/suspects and their trades (i.e. purchase/sale and quantity
purchased/sold) along with dates/period of trades.”
c. in the clause 10, after the words and symbol “based on?” and before the words “Please
attach”, the words and symbols “Please include self-certified copies of all the relevant
documents.”, shall be inserted.
AJAY TYAGI, Chairman
[ADVT.-III/4/Exty./320/2020]
Footnotes:
1. The Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations,
2015 was published in the Gazette of India on January 15, 2015 vide No. LAD-NRO/
GN/2014-15/21/85.
2. The Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations,
2015 was subsequently amended on,-
i. December 31, 2018 by the Securities and Exchange Board of India (Prohibition of
Insider Trading) (Amendment) Regulations, 2018 vide No. SEBI/LAD-NRO/GN/
2018/59.
ii. January 21, 2019 by the Securities and Exchange Board of India (Prohibition of Insider
Trading) (Amendment) Regulations, 2019 vide No. SEBI/LAD-NRO/GN/ 2019/02.
iii. July 25, 2019 by the Securities and Exchange Board of India (Prohibition of Insider
Trading) (Second Amendment) Regulations, 2019 vide No. SEBI/LAD-NRO/GN/
2019/23.
iv. September 17, 2019 by the Securities and Exchange Board of India (Prohibition of
Insider Trading) (Third Amendment) Regulations, 2019 vide No. SEBI/LAD-
NRO/GN/ 2019/32.
v. July 17, 2020 by the Securities and Exchange Board of India (Prohibition of Insider
Trading) (Amendment) Regulations, 2020 vide No. SEBI/LAD-NRO/GN/ 2020/23.
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