Now Reading: SEBI proposes new rules for handling insider trading data
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SEBI proposes new rules for handling insider trading data
The Securities and Exchange Board of India (SEBI) has released a consultation paper proposing a structural digital database (SDD) to track the handling of unpublished price-sensitive information (UPSI) by listed companies. The…
The Story in Brief
The Securities and Exchange Board of India (SEBI) has released a consultation paper proposing a structural digital database (SDD) to track the handling of unpublished price-sensitive information (UPSI) by listed companies. The new framework aims to replace the current fragmented reporting system with a centralised electronic trail that records who accessed UPSI, when, and for what purpose. Companies would be required to upload details of all UPSI shared with analysts, investors, or any third party onto the SDD within two working days. The proposal is part of SEBI's ongoing efforts to strengthen the Prohibition of Insider Trading Regulations, 2015, and follows multiple instances where selective disclosure of material information before official announcements was suspected.
The Indian Opinion
The usual hand-wringing over 'regulatory overreach' misses the point. Insider trading is a cancer on market integrity, and SEBI's move to tighten how companies treat unpublished price-sensitive information is a necessary surgical strike. The real narrative should not be about compliance burden but about whether the new structural digital database will be watertight against the creative data-dumping and selective sharing that have long plagued enforcement. The question is, will a few large houses be caught with their hands in the cookie jar, or will this be another toothless directive that merely adds compliance costs for honest players?
Source: bseindia.com
This story was synthesised by AI from the source linked above.
