SEBI has made the decision to extend the automated implementation of trading window closure to the immediate relatives of designated persons during the declaration of financial results. This move aims to simplify compliance and prevent inadvertent non-compliance with insider trading norms.
In the initial phase, this framework was applicable to designated persons of listed companies, which effectively eliminated inadvertent trading during trading window closure.
“Considering the successful implementation of the framework, it is now proposed to extend this to immediate relatives of designated persons,” the regulator stated.
The extension of this framework to immediate relatives will further enhance the prevention of insider trading and ensure better compliance with the regulations.
Published on February 7, 2025.
