Thursday April 14 2016

News Source: Global Exchanges

Focus: Trading Rules

Type: General




Guidance Note on SEBI (Prohibition of Insider Trading) Regulations 2015 was issued on August 24, 2015 under regulation 11 of the PIT Regulations providing guidance to the market to remove certain difficulties in the interpretation or application of the provisions of the regulations. The Guidance Note interalia stated that buy back offers, open offers, rights issues, FPOs, bonus, etc. of a listed company are available to designated persons also, and restriction of ‘contra-trade’ shall not apply in respect of such matters.

Subsequently, the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations 2009 were amended with effect from February 17, 2016 to provide for exit opportunity to dissenting shareholders in terms of sections 13 and 27 of the Companies Act.

The Guidance Note dated August 24, 2015 on SEBI (Prohibition of Insider Trading) Regulations, 2015 has been amended with effect from February 17, 2016 to clarify that exit offer is also exempted from the restriction on contra trade under the PIT Regulations.

Click on the link above for further details.