All listed firms are subject to the trading restriction mandate: Sebi

Synopsis

Such a closure would be enforced on the securities to which the UPSI pertains. When the trading window is closed, designated people and their immediate relatives are not permitted to deal in securities.

Mumbai: The Securities and Exchange Board of India (Sebi) said on Wednesday that the ability to freeze specified people’ permanent account numbers (PANs) during trading window closure for financial results has been extended to all listed businesses. The measure is intended to avoid unintentional trading by specified individuals within the trading window time. Currently, Sebi regulations require that the trading window be stopped when a compliance officer considers that a designated individual is likely to have UPSI (unpublished price sensitive information).

Such a closure would be enforced on the securities to which the UPSI pertains. When the trading window is closed, designated people and their immediate relatives are not permitted to deal in securities. Trading restrictions will be imposed from the end of each quarter until 48 hours following the announcement of financial results.

Sebi issued a framework for implementing a system to prohibit trading by specified people by freezing the PAN at the security level during the trading window closing period in August 2022. The framework was first made available to organisations listed on the Nifty 50 and Sensex.

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