Insider trading refers to buying or selling a company's shares by individuals with access to confidential information. This article examines key amendments to the SEBI (Prohibition of Insider Trading) Regulations, 2015, which take effect on June 25, 2024. The amendments include:
‣ Reducing the trading commencement period for insiders to 120 calendar days
‣ Exempting insiders from maintaining a 12-month trading period
‣ Broadening parameters for each trade execution with defined price limits
‣ Clarifying trade splitting durations to prevent misuse
‣ Allowing deviations from trading plans only in exceptional cases
‣ Requiring insiders to execute trades within specified price limits
‣ Mandating compliance officers to approve or reject trading plans within two trading days
