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SEBI Extends Automated Trading Window Framework to Include Immediate Relatives of Designated Persons (DPs).

Banking & Finance | Dated: 23 Apr 2025

In April 2025, Mumbai (Maharashtra)-based Securities and Exchange Board of India (SEBI) has decided to extend its automated trading window closure mechanism to include immediate relatives of Designated Persons (DPs) in listed companies.This decision has been taken ahead of the declaration of financial results to further strengthen compliance with insider trading regulations.

🎯 Key Highlights:

  • - The move aims to prevent inadvertent violations by ensuring that individuals who may have access to Unpublished Price-Sensitive Information (UPSI)—such as quarterly financial results—are restricted from trading during specific periods.
  • - Designated Depository (DD) must provide portal access to listed companies, which are mandated to upload key details—like PAN, names, and demat account numbers—of Designated Persons (DPs) and their immediate relatives. Depositories must also submit quarterly reports to SEBI in a specified format.

💡 Other Important Facts:

  • (i) The implementation of the PAN-based trading freeze mechanism will be carried out in two phases—Phase-I will begin on July 01, 2025, for the top 500 listed companies (based on market capitalization), while Phase-II will cover the remaining listed companies starting from October 01, 2025. Listed companies are required to confirm the submitted data at least two trading days (T-2) before the trading window closure date. Following this, the Designated Depository (DD) will forward the verified information to stock exchanges and depositories at least one day prior to the closure period.
  • (ii) Depositories will issue standardized formats and submission timelines to maintain consistency in reporting and compliance.
  • (iii) Any discrepancies or disputes in the process will be resolved through coordination among depositories, stock exchanges, and listed companies, as per SEBI.

📚 Test Your Knowledge:

Which regulatory body has recently extended the automated trading window closure framework to include immediate relatives of Designated Persons (DPs)?

Correct Answer: SEBI

🚀 Quick Recap:

About SEBI

  • Chairperson: Tuhin Kanta Pandey
  • Headquarters: Bengaluru