In A Bid To Curb Insider Trading, SEBI Mandates Disclosures For Debt Securities Of Listed Entities

In a major move towards curbing insider trading, the Securities and Exchange Board of India (SEBI) has decided to include the listed debt securities of equity listed companies under the purview of "System Driven Disclosures".

The SEBI has asked the depositories and stock exchanges to make necessary arrangements such that the disclosures pertaining to listed debt securities, along with equity shares and equity derivative instruments, are disseminated on the websites of respective stock exchanges with effect from July 1, 2021.

The System Driven Disclosures have already been implemented for members of promoter group and designated persons in addition to the promoters and directors of company under Regulation 7(2) of Prohibition of Insider Trading (PIT) Regulations pertaining to trading in equity shares and equity derivative instruments -- futures and options -- of the listed company, wherever applicable by the entities.

The disclosures for equity and equity derivative segments are being displayed on the exchange website under System Driven Disclosures.

"It has now been decided to include the listed debt securities of equity listed companies under the purview of the said System Driven Disclosures for the entities. Further, the procedure for implementation of System Driven Disclosures as provided in SEBI circular no. SEBI/HO/ISD/ISD/CIR/P/2020/168 dated September 9, 2020, shall also be applicable for the listed Debt Securities," said a circular by the regulator on Wednesday.

Stock exchanges are advised to bring the provisions of this circular to the notice of all listed companies and also disseminate the same on their websites, it said.

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