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SEBI Tightens Insider Trading Norms, Eases Delisting Rules

Published on Wed, Nov 19,2014 | 20:51, Updated at Wed, Nov 19 at 21:14Source : 

The Securities and Exchange Board of India (SEBI) on Wednesday approved listing regulations, stricter norms to deal with insider trading menace and amendments to delisting regulations. Here are the highlights...Catch a detailed coverage on The Firm this weekend.

#SEBI Definition of 'Insider' & 'connected person' widened. 'UPSI' unpublished price sensitive info now refers to both company & securities

#SEBI Generally available information still linked to info available on stock exchange platform (Comm had included other sources as well)

#SEBIInsiderTradingNorms Cos to require 3rd party connected persons to disclose trading/holdings in co securities

#SEBIInsiderTradingNorms Due diligence can now mean access to UPSI, as long as it is communicated with safeguards

#SEBIInsiderTradingNorms Insiders can now avail of trading plans to trade in a pre-scheduled manner

#SEBIInsiderTradingNorms Prohibition on derivative trading by Directors & KMP provided in line with Cos Act 2013

#SEBI Listing agmnt now converted into regs & covers equities, non-convertible debt, non-convertible RPS, IDRs, securitised debt &MF units

#SEBIDelistingNorms Delisting only if acquirer reaches 90% & if atleast 25% of number of public shareholders tender in reverse bkbldg

#SEBIDelistingNorms Offer price = price at which promoter reaches 90% (including his shareholding)

#SEBIDelistingNorms Promoter group prohibited fm making delisting offer if any group entity sold shares 6mnths prior to Board mtng decision

#SEBIDelistingNorms BIG NEWS Delisting to be now done via stock excahnge. Same applies to Buyback & Takeover offers (tender offers)

#SEBIDelistingNorms Reverse Book Building stays except for small companies (Capital < Rs 10 cr & Networth < Rs 25 cr) with conditions

#SEBIDelistingNorms Delisting timeline reduced from current 137 calender days (approx 117 working days) to 76 working days

#SEBIDelistingNorms BIG NEWS Option given to acquirer to delist after triggering takeover code

#SEBISettlementNorms In minor violations parties can seek settlement before show cause notice issued (SEBI will intimate potential action)

#SEBIBoard approved proposal to initiate public consultation on re-classification of promoters

#SEBIBoard approved proposal to initiate public consultation on issuance of partly paid shares & warrants

#SEBIBoard approved proposal to review policy of restricting wilful defaulter from raising capital, after public consultations

#SEBIBoard allows FVCIs to invest in NBFC-CIC (Core Investment Companies) as defined by RBI (BIG+ when combined with RBI new norms for CIC)

SEBI Board Meeting Decisions on Insider Trading & Delisting norms etc... here -

For more on #SEBIBoard on #SEBIDelistingNorms & #SEBIInsiderTradingNorms please watch The Firm this weekend and next and next...


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