Securities and Exchange Board of India (Prohibition of Insider Trading) (Second Amendment) Regulations, 2024

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....Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015, namely: - 1. These Regulations may be called the Securities and Exchange Board of India (Prohibition of Insider Trading) (Second Amendment) Regulations, 2024. 2. They shall come into force on the ninetieth day from the date of their publication in the Official Gazette. 3. In the Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015, - I. in regulation 5, in sub-regulation (2), (1) in clause (i), (a) the words "six months" shall be substituted by the words "one hundred and twenty calendar days"; (b) in the note, the words "six months" shall be substituted by the words "one....

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....an such closing price; b. for a sell trade: the lower price limit shall be between the closing price on the day before submission of the trading plan and upto twenty per cent lower than such closing price. Explanation: (i) While the parameters in sub-clauses (i), (ii) and (iii) shall be mandatorily mentioned for each trade, the parameter in sub-clause (iv) shall be optional. (ii) The price limit in sub-clause (iv) shall be rounded off to the nearest numeral. (iii) Insider may make adjustments, with the approval of the compliance officer, in the number of securities and price limit in the event of corporate actions related to bonus issue and stock split occurring after the approval of trading plan....

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....l be omitted; (4) after the existing proviso thereto, the following proviso and Explanation shall be inserted, namely: - "Provided further that if the insider has set a price limit for a trade under sub-clause (iv) of clause (v) of sub-regulation 2, the insider shall execute the trade only if the execution price of the security is within such limit. If price of the security is outside the price limit set by the insider, the trade shall not be executed. Explanation: In case of non-implementation (full/partial) of trading plan due to either reasons enumerated in sub-regulation 4 or failure of execution of trade due to inadequate liquidity in the scrip, the following procedure shall be adopted: (i) The insid....

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.... "execution of the trading plan should not be commenced."; (7) after the second paragraph of the note, the following paragraph shall be inserted, namely: - "The second proviso is intended to address the scenario where the insider has set a price limit for a trade and due to adverse fluctuation in market prices, the price of the security is outside the price limit set by the insider, the trade shall not be executed. However, if the insider wishes to trade irrespective of the fluctuation in market price, he may not set any price limit at the time of formulation of the trading plan." IV. in regulation 5, sub-regulation (5) shall be substituted by the following, namely: - "The compliance officer shall approve....