Sebi Proposes Trading Window Extension to Relatives of Insiders

Sebi aims to extend its automated trading window closure to include immediate relatives of designated persons in listed companies, reducing inadvertent insider trading violations. This proposed measure seeks public input and builds on existing frameworks that prevent trading during sensitive financial result disclosures.

Sebi, India's markets regulator, has proposed expanding the scope of its automated trading window closure to encompass the immediate relatives of designated persons in listed companies.

Currently, the measure prevents insider trading by freezing trading activities when sensitive financial results close the trading window. This expansion aims to reduce non-compliance risks by including family members who might inadvertently possess undisclosed information.

The proposal, seeking public comments until February 28, signals Sebi's commitment to tightening regulations around insider trading, promoting transparency, and ensuring fair market practices.

(With inputs from agencies.)