As a Company Secretary in employment of Delux Ltd., a listed company, what will be your role in monitoring trading window under SEBI (Prohibition of Insider Trading) Regulations, 2015.

CS Executive · Securities Laws and Capital Markets · PYQS · December 2020
As a Company Secretary in employment of Delux Ltd., a listed company, what will be your role in monitoring trading window under SEBI (Prohibition of Insider Trading) Regulations, 2015.

Answer & Explanation:

Role of Company Secretary in monitoring trading window under SEBI (Prohibition of Insider Trading) Regulations, 2015 is as under: To ensure that the trading window shall be closed when a designated person or class of designated persons can reasonably be expected to have possession of unpublished price sensitive information. Such closure shall be imposed in relation to such securities to which such unpublished price sensitive information relates. To ensure that the trading window is closed at the time of declaration of Financial results declaration of dividends; change in capital structure; mergers, de-mergers, acquisitions, de-listings, disposals and expansion of business and such other transactions; changes in key managerial personnel To ensure that designated persons and their immediate relatives shall not trade in securities when the trading window is closed. To ensure that no trading shall between 20th day prior to closer of financial period and 2nd trading day after disclosure of financial results. To approve the trading plan and after the approval of trading plan, as compliance officer shall notify the plan to the stock exchanges on which the securities are listed. To keep records of period specified as 'close period' and the 'trading window'. To ensure that the trading restrictions are strictly observed and all directors/ officers/designated employees conduct all their dealings in the securities of the company only in a valid trading window and do not deal in the company's securities during the period when the trading window is closed. The timing for re-opening of the trading window shall be determined by the compliance officer taking into account various factors including the unpublished price sensitive information in question becoming generally available and being capable of assimilation by the market, which in any event shall not be earlier than forty-eight hours after the information becomes generally available.

Topics: Insider Trading

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