Initial Disclosures and Continual Disclosures under SEBI (Prohibition of Insider Trading) Regulations, 2015

Regulation 7(1) and 7(2) of under SEBI (Prohibition of Insider Trading) Regulations, 2015 talks about disclosures by certain persons which can be initial and continual. The provisions with respect to the same are detailed herein below:

Initial Disclosures under Regulation 7(1):

Every person on appointment as key managerial personnel or a director of the company or upon becoming a promoter or member of the promoter group] shall disclose his holding of securities of the company as on the date of appointment or becoming a promoter, to the company within seven days of such appointment or becoming a promoter.

Continual Disclosures under Regulation 7(2):

  1. Every promoter [ member of the promoter group] [designated person] and director of every company shall disclose to the company the number of such securities acquired or disposed of within two trading days of such transaction if the value of the securities traded, whether in one transaction or a series of transactions over any calendar quarter, aggregates to a traded value in excess of ten lakh rupees or such other value as may be specified.
  2. Every company shall notify the particulars of such trading to the stock exchange on which the securities are listed within two trading days of receipt of the disclosure or from becoming aware of such information.
  3. The above disclosures shall be made in such form and such manner as may be specified by the Board from time to time.

Disclosures by other connected persons under Regulation 7(3):

Any company whose securities are listed on a stock exchange may, at its discretion require any other connected person or class of connected persons to make disclosures of holdings and trading in securities of the company in such form and at such frequency may be determined by the company in order to monitor compliance with these regulations.

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