<h1>SEBI Updates Insider Trading Guidance: Exit Offers Exempt from Contra Trade Restrictions, Clarifies ESOPs and Compliance Roles.</h1> The Securities and Exchange Board of India (SEBI) amended its Guidance Note on the Prohibition of Insider Trading Regulations, 2015, effective February 17, 2016. The amendment clarifies that exit offers are exempt from contra trade restrictions. The Guidance Note addresses queries on the interpretation of these regulations, particularly concerning Employee Stock Options (ESOPs), contra trades, pledging of securities, and responsibilities of compliance officers. It specifies that ESOPs are not considered trading for certain regulatory purposes and outlines the applicability of contra trade restrictions to various market participants, including employees and directors.