Pudumjee Paper Products Ltd featured in Business Standard
In accordance with SEBI (Prohibition of Insider Trading) Regulations 2015 and Insider Trading Code of Conduct, it is imperative for all individuals classified as insiders to adhere to the guidelines outlined. This ensures fair and transparent practices within the organization, preventing the misuse of unpublished price-sensitive information for personal gain.
Insiders, which include designated persons and their immediate relatives, are required to obtain pre-clearance before conducting any trade in the company’s securities. This process involves disclosing the nature of the proposed transaction along with other relevant details to the compliance officer for approval. By seeking pre-clearance, insiders can avoid the inadvertent violation of insider trading regulations and uphold the integrity of the market.
Additionally, insiders are prohibited from indulging in short-term trading or speculative transactions based on unpublished price-sensitive information. This restriction aims to prevent any advantage gained from market-sensitive information that has not been made public. Insiders must exercise caution and restrain from engaging in any activities that may give rise to suspicions of insider trading.
Furthermore, insiders are expected to maintain confidentiality regarding any unpublished price-sensitive information that they may come across in the course of their duties. This confidentiality clause extends beyond their term as insiders and emphasizes the importance of safeguarding sensitive information to prevent its misuse. By upholding strict confidentiality standards, insiders contribute to a fair and equitable market environment that values transparency and integrity.
In the event of any unintended transactions or lapses in compliance with insider trading regulations, insiders are required to promptly report such instances to the compliance officer. This proactive measure allows for the timely resolution of any potential breaches and demonstrates the individual’s commitment to upholding legal and ethical standards in their financial dealings.
To ensure compliance with insider trading regulations, companies are encouraged to conduct regular awareness programs and training sessions for insiders. These initiatives aim to educate insiders about their responsibilities, the implications of insider trading, and the importance of upholding ethical standards in their interactions with the market. By fostering a culture of compliance and ethical conduct, companies can mitigate the risks associated with insider trading and promote a level playing field for all market participants.
In conclusion, adherence to insider trading regulations is essential for upholding the integrity of the market and enhancing investor confidence. By following the guidelines outlined by SEBI and maintaining strict compliance with insider trading regulations, individuals classified as insiders can contribute to a transparent and fair market environment that benefits all stakeholders.
