If the Designated employee buy Shares in  Trading Window Closure period, what's the /penalty .?
Channel: R V Seckar
Date: 2020-08-04

If the Designated employee buy Shares in  Trading Window Closure period, what's the /penalty .?
As per SEBI PIT , whether any Intimation to SEBI or Stock Exchange is Needed ?
NOT TO TRADE BY DESIGNATED EMPLOYEES DURING WINDOW CLOSURE PERIOD 
The Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015 (Insider Trading Regulations) require listed companies to use a trading window for monitoring trades by designated persons and their immediate relatives. 
The compliance officer is responsible for closing the trading window under certain circumstances when designated persons are reasonably expected to be in possession of unpublished price sensitive information. With certain exceptions, designated persons and their immediate relatives are not permitted to trade when the trading window is closed. When open, designated persons are required to apply to the compliance officer for pre-clearance of trades. Trading has been defined broadly to include subscribing, buying, selling or dealing in securities, or agreeing to do so.
Restriction under PIT Regulations
The Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015 (PIT Regulations), restrict “insiders” from dealing in listed (or to-be-listed) securities when in possession of unpublished price sensitive information (UPSI). Any trading by insiders when in possession of UPSI is deemed to be motivated by their knowledge of UPSI.

Yes. The company has to make a qualified report to SEBI
It has to Issue such an employee, a Show cause and should demand for his explanation.
Listed Company has to need to imitate stock exchange and Suo-moto penalise the person for trading and also mention about the penalty imposed on such employee while intimating to stock exchange
In nutshell they have to deposit the profit whatever they make after purchase / sale the shares to the company.
While on BSE Listing centre INDR under which category such information has to be uploaded?
Is there any approved  trading plan?
Refer SEBI circular dated July 19, 2019
General information, regulation 30
There is no specific category for SEBI PIT??
Please note that such incident will have to be recommended to Audit Committee in Board Meeting.
The listed company need to intimate to stock exchange and also send the same copy to SEBI.
Report by Listed Company or Intermediary or Fiduciary for violations related to Code of Conduct under SEBI ( PIT) Regulations 2015.  For listed company , Schedule B read with Regulation 9 (1) of SEBI (PIT) Regulations 2015.
SEBI PIT REGULATIONS AMENDMENT 2020
Securities and Exchange Board of India (Prohibition of Insider Trading) (Amendment) Regulations, 2020
b-regulation 5, shall be substituted with the following, namely-“(5) The  board  of  directors  or  head(s)  of  the  organisation  of  every person required to handle unpublished price sensitive information shall ensure that a structured  digital database is maintained containing the nature  of  unpublished  price  sensitive  information  and  the  names  of such persons who have shared the information and also the names of such  persons  with  whom  information  is  shared under  this  regulation along  with  the  Permanent  Account  Number  or  any  other  identifier authorized by law where Permanent Account Number is not available.
 Such  database  shall  not  be  outsourced  and  shall  be  maintained internally  with  adequate  internal  controls  and  checks  such  as  time stamping and audit trails to ensure non-tampering of the database.”
Infosys fined Independent Director for inadvertently selling shares during market hours

Infosys 1st March 2019 said it has fined its lead independent director Kiran Mazumdar-Shaw for “inadvertently “ selling 1,600 shares of the company during the open trading window.

The shares were sold by her portfolio management services without obtaining clearance, Infosys said in filing to the stock exchanges. Shaw, who was not aware of the transaction, was fined Rs 9.5 lakh that she needs to pay to a charity organisation.

The company notified the BSE that this development was brought to the attention of the Compliance Officer of Infosys on February 13,2019.

“The trade was carried out by the portfolio manager without the knowledge of Mazumdar-Shaw. In portfolio management services, the investor does not generally monitor the day-to-day investment decisions. In this case as well, Mazumdar-Shaw had given no instruction to conduct the trade and she also had no knowledge of the trade having occurred. The portfolio manager unilaterally took. the decision to conduct the trade,” said Infosys in its filing to the BSE.

The company’s Audit Committee determined there was a violation of insider trading policy and levied a penalty of Rs 9.5 lakh that she has to pay to a charitable organisation of her choice. However, it also clarified that it was an inadvertent trade made without intent to violate insider trading 


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