Introduction: The Bombay Stock Exchange (BSE) has issued a crucial notice, No: 20231124-39, dated November 24, 2023, concerning the implementation of SEBI’s (Prohibition of Insider Trading) Regulations, 2015 (PIT Regulations). This notice specifically addresses the framework for restricting trading by Designated Persons (DPs) through the freezing of PAN at the security level.
Detailed Analysis:
1. Background and Previous Notices:
- The notice refers to previous BSE notices dated August 8, 2022, June 28, 2023, July 31, 2023, and November 17, 2023.
- It aligns with SEBI circular no. SEBI/HO/ISD/ISD-SEC-4/P/CIR/2022/107 dated August 5, 2022 and SEBI/HO/ISD/ISD-PoD-2/P/CIR/2023/124 dated July 19, 2023
2. Revised Annexure for Top 1,000 Companies:
- All listed entities are urged to review the attached revised Annexure 1 for the Next Top 1,000 companies in terms of BSE Market Capitalization as of June 30, 2023.
3. Qualification Criteria:
- Companies meeting the criteria must include all equity ISIN and convertible ISINs.
- Designation of one depository is required, and information, including PAN of Promoters, promoter group, directors, and designated persons, must be provided as specified by the depositories.
4. Designated Depository and PAN Information:
- Listed entities are mandated to designate a depository and provide PAN information of relevant individuals as per SEBI circular no – SEBI/HO/ISD/ISD/CIR/P/2020/168 dated September 9, 2020.
- Regular updates of the designated person list are essential, following the depositories’ specified manner.
5. Effective Date and Compliance Deadline:
- The circular is set to be enforced for trading window closure starting January 1, 2024.
- Listed companies are reminded to take note of the circular and ensure compliance with the outlined requirements.
Conclusion: SEBI’s initiative to freeze PAN at the security level for Designated Persons is a significant step towards strengthening insider trading regulations. The BSE’s notice provides a comprehensive overview of the framework, qualification criteria, and compliance procedures. Listed entities must promptly review the revised Annexure, designate a depository, and update PAN information to adhere to the January 1, 2024, enforcement. This proactive approach aligns with SEBI’s commitment to maintaining the integrity and transparency of the securities market. Companies are advised to stay vigilant and ensure timely compliance with these regulatory measures.
Bombay Stock Exchange Ltd.
Notice No: 20231124-39
Notice Date: 24 Nov 2023
Category: Circulars Listed Companies
Segment: Equity
Subject: SEBI (Prohibition of Insider Trading) Regulations, 2015 (“PIT Regulations”) – Framework for restricting trading by Designated Persons (“DPs”) by freezing PAN at security level
Dear Sir/Madam,
This is in furtherance to the Exchange notice no: 20220808-7 dated August 8, 2022; 20230628-23 dated June 28, 2023; 20230731-15 dated July 31, 2023 and 20231117-47 dated November 17, 2023 and in accordance with Securities and Exchange Board of India (SEBI) circular no. SEBI/HO/ISD/ISD-SEC-4/P/CIR/2022/107 dated August 5, 2022 and SEBI/HO/ISD/ISD-PoD-2/P/CIR/2023/124 dated July 19, 2023, regarding Trading Window closure period under Clause 4 of Schedule B read with Regulation 9 of SEBI (Prohibition of Insider Trading) Regulations, 2015 (“PIT Regulations”) – Framework for restricting trading by Designated Persons (“DPs”) by freezing PAN at security level.
1. According to the said circular issued by SEBI, Exchange has issued circular on November 17, 2023 for the same. However, all listed entities are requested to please find attached revised Annexure 1 for Next Top 1,000 companies in terms of BSE Market Capitalization as of June 30, 2023.
2. Companies that qualify must include all equity ISIN and ISINs that are convertible into equity.
3. Listed entities are required to designate one of the depositories as its designated depository and provide the information including PAN of Promoter(s), promoter group, director(s) and designated person(s) in the manner as specified by the depositories according to SEBI circular no – SEBI/HO/ISD/ISD/CIR/P/2020/168 dated September 9, 2020. Further, listed entities shall update their designated person list in the manner specified by the depositories on regular basis.
This circular shall come into force for trading window closure with effect from January 1, 2024.
The aforesaid circular is attached for reference.
All Listed companies are requested to take note and comply accordingly.
Ashok kumar Singh
DGM-Listing Compliance
Bijal Shettigar
AM-Listing Compliance
