SEBI has decided to extend the automated implementation of trading window closure to immediate relatives of designated persons during declaration of financial results. This is with the objective to ease compliance and to prevent inadvertent non-compliance of insider trading norms.
In the first phase, the framework was made applicable to designated persons of listed companies. This has eliminated inadvertent trading during trading window closure.
“Considering the effective implementation of the framework, it is proposed to extend the aforesaid framework to immediate relatives of designated persons,” the regulator said.