New Delhi, May 28, 2018
Markets regulator Sebi will soon put in place system-driven disclosures for non-promoters, directors and certain class of employees of listed companies.
The system-driven disclosures in securities market was introduced in December 2015 and is being implemented in a phased manner. It has already been put in place with respect to disclosures of promoter/ promoter group.
In the next phase, the system-driven disclosures under certain sections of SAST (Substantial Acquisition of Shares and Takeovers) regulations would be made applicable for non-promoters, Sebi said in a circular today.
According to the circular, disclosures under a section of PIT (Prohibition of Insider Trading) norms pertaining to directors and employees would also be included.
"The CEO and up to two levels below CEO of a company shall be deemed as employees for the purpose of system-driven disclosures," with respect to the particular section of PIT regulations.
However, the system-driven disclosure under the SAST regulations would not be "applied to a scheduled commercial bank or public financial institution as pledgee irrespective of whether such a pledge is for securing indebtedness in the ordinary course of business or not".
The regulator noted that the system would continue to run in parallel with the existing system.
"The depositories and stock exchanges shall make necessary arrangements so that the aforesaid disclosures pertaining to SAST regulations and PIT regulations are disseminated on the websites of respective stock exchanges from August 1, 2018," the circular said.
[The Times of India]