INDIA: New insider trading regulations to simplify India major shareholdings reporting

Tuesday March 3 2015

Further to the update of 5 March 2013, the Securities and Exchange Board of India has announced the SEBI (Prohibition on Insider Trading) Regulations, 2015.

The regulations will repeal and replace the current 1992 regulations in their entirety.

The revisions will remove the current “double reporting” requirements applicable for India major shareholdings. Currently, shareholders must monitor against and file reports under two separate reporting rules; those under the Insider Trading Regulations, and those contained in the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations 2011. Both require reporting on reaching 5% and on 2% changes, however the requirements treat holdings in derivatives and other financial instruments differently.

The disclosure requirements under Article 13 of the Insider Trading Regulations for persons holding more than 5% shares or voting rights or in case of any further change in their shareholding or voting rights will be repealed on the entry into force of the new rules and are not being replaced.

The new rules will enter into effect on 15 May 2015.

Click on the above link for more details.