Overview of Insider Trading

The trading of the company shares based on the inside information about the company (which is not available to the general public) is known as Insider Trading. In simple terms, the act of doing Trading on the basis of “Unpublished Price Sensitive Information” is known as Insider Trading. Insider Trading is considered an illegal practice and persons found guilty of Insider Trading can be fined or punished with imprisonment.

Overview of SEBI Insider Trading Regulations, 2015

The SEBI Prohibition of Insider Trading Regulations is applicable to every company listed on the Stock Exchange. SEBI has effectively formulated the Insider Trading framework in India. The regulations define who is considered an Insider and who is considered as Non-Insider. The regulations require every promoter, designated employee, and Director of every Company to make timely disclosures of any shares owned, acquired, and sold for the company within stipulated timelines. To improve the level of compliance, SEBI recently directed all listed companies to maintain a Structured Digital Database. This Online Database is also in line with the investigation and surveillance of SEBI. SEBI has been regularly amending the regulations to make them more effective & to promote a fair trading environment.

Prevention of Insider Trading Awareness Training

Riskpro India offers Prevention of Insider Trading Awareness Training for Indian companies. Our Training program includes the following:

1. An overview of insider trading

2. Major instances of insider trading in India

3. Brief understanding of the SEBI’s (Prohibition of Insider Trading) Regulations and its requirements, penalties for non-compliance

4. How to create a governance framework to ensure the prevention of insider trading

5. Benefits of periodic monitoring of processes, systems, and controls ensure compliance with the regulations

6. How to create policies such as the whistleblower policy and ensuring employees are aware of the same to highlight any instances of insider trading Riskpro India provides Prevention of Insider Trading Awareness Training programs as classroom training at your office or through online sessions, depending on the company’s requirements. Our classroom training sessions are mostly 2-3 Hours and web-based training is 1.5 hrs. If you would like to know more about our training programs, please connect with us at info@riskpro.in