New Delhi, July 23: Markets regulator, Securities and Exchange Board of India (Sebi) Thursday allowed offer for sale (OFS) and rights entitlement transactions during the trading window closure period, with immediate effect.
Under the market norms, listed companies need to use a trading window to monitor transactions by designated people in a bid to prevent insider trading. The compliance officer is responsible for closing the trading window, in case the designated person is expected to be in possession of unpublished price-sensitive information.
In a circular, Sebi said, "Trading window restrictions shall not apply in respect of OFS and RE (rights entitlement) transactions carried out in accordance with the framework specified by the Board from time to time."
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Separately, the regulator said that listed companies, intermediaries and fiduciaries will have to promptly inform the stock exchange regarding violation of code of conduct prescribed under the insider trading norms.
Further, they need to inform the exchanges about the violations in a prescribed format.
It said the amount collected from such violation will be credited to the Investor Protection and Education Fund (IPEF), which is administered by Sebi.
