In a Notification dated 29.10.2020, the Securities and Exchange Board of India (SEBI) has issued the SEBI (Prohibition of Insider Trading) (Second Amendment) Regulations, 2020 (Amendment) to further amend the SEBI (Prohibition of Insider Trading) Regulations, 2015 (Principal Regulation).
The Amendment makes changes in respect of Chapter III which allows the voluntary submission of Original Information by an Informant under a Voluntary Information Disclosure Form.
The following Explanation has been added to the existing definition of Original Information* to bring in more clarity on what would be considered as ‘timely information’.
“Explanation. – Information shall be considered timely, only if as on the date of receipt of the duly completed Voluntary Information Disclosure Form by the Board, a period of not more than three years has elapsed since the date on which the first alleged trade constituting violation of insider trading laws was executed.”
The Amendment has also revised Schedule D [Form for Informant’s Voluntary Information Disclosure to be submitted to the Board].
Now, the form lists out the specific information to be included while describing how the information submitted constitutes a violation.
For a detailed read please refer to the hyperlink below.
Source: Securities and Exchange Board of India
