Type of Document: Circular
Notification Date: 30-Dec-2024
Relevant Act(s)/Rule(s): SEBI Act, 1992
Circular No.:SEBI/HO/ISD/ISD-PoD-2/P/CIR/2024/180
Background:
The SEBI (Prohibition of Insider Trading) Regulations restrict trading in securities during certain periods to prevent insider trading. However, these restrictions were previously relaxed for specific transactions like acquisitions via warrants or rights issues. The new amendment extends this relaxation to non-convertible securities, ensuring that such subscriptions can happen even during trading window closures.
Steps taken:
SEBI has decided to permit subscription to non-convertible securities during the trading window closure period, in addition to the transactions already exempt under the SEBI (Prohibition of Insider Trading) Regulations, 2015. The new provision applies to issues carried out in accordance with the frameworks specified by the Board. Stock exchanges are instructed to inform all listed companies and make this information available on their websites.
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