SEBI Tightens Insider Trading Norms, Eases Delisting Rules

The Securities and Exchange Board of India (SEBI) on Wednesday approved listing regulations, stricter norms to deal with insider trading menace and amendments to delisting regulations. Here are the highlights...Catch a detailed coverage on The Firm this weekend.

#SEBI Definition of 'Insider' & 'connected person' widened. 'UPSI' unpublished price sensitive info now refers to both company & securities

#SEBI Generally available information still linked to info available on stock exchange platform (Comm had included other sources as well)

#SEBIInsiderTradingNorms Cos to require 3rd party connected persons to disclose trading/holdings in co securities

#SEBIInsiderTradingNorms Due diligence can now mean access to UPSI, as long as it is communicated with safeguards

#SEBIInsiderTradingNorms Insiders can now avail of trading plans to trade in a pre-scheduled manner

#SEBIInsiderTradingNorms Prohibition on derivative trading by Directors & KMP provided in line with Cos Act 2013

#SEBI Listing agmnt now converted into regs & covers equities, non-convertible debt, non-convertible RPS, IDRs, securitised debt &MF units

#SEBIDelistingNorms Delisting only if acquirer reaches 90% & if atleast 25% of number of public shareholders tender in reverse bkbldg

#SEBIDelistingNorms Offer price = price at which promoter reaches 90% (including his shareholding)

#SEBIDelistingNorms Promoter group prohibited fm making delisting offer if any group entity sold shares 6mnths prior to Board mtng decision

#SEBIDelistingNorms BIG NEWS Delisting to be now done via stock excahnge. Same applies to Buyback & Takeover offers (tender offers)

#SEBIDelistingNorms Reverse Book Building stays except for small companies (Capital < Rs 10 cr & Networth < Rs 25 cr) with conditions

#SEBIDelistingNorms Delisting timeline reduced from current 137 calender days (approx 117 working days) to 76 working days

#SEBIDelistingNorms BIG NEWS Option given to acquirer to delist after triggering takeover code

#SEBISettlementNorms In minor violations parties can seek settlement before show cause notice issued (SEBI will intimate potential action)

#SEBIBoard approved proposal to initiate public consultation on re-classification of promoters

#SEBIBoard approved proposal to initiate public consultation on issuance of partly paid shares & warrants

#SEBIBoard approved proposal to review policy of restricting wilful defaulter from raising capital, after public consultations

#SEBIBoard allows FVCIs to invest in NBFC-CIC (Core Investment Companies) as defined by RBI (BIG+ when combined with RBI new norms for CIC)

SEBI Board Meeting Decisions on Insider Trading & Delisting norms etc... here -http://www.sebi.gov.in/sebiweb/home/detail/29593/yes/PR-SEBI-Board-Meeting

For more on #SEBIBoard on #SEBIDelistingNorms & #SEBIInsiderTradingNorms please watch The Firm this weekend and next and next...