Business Standard – Times Guaranty Ltd

In accordance with the SEBI (Prohibition of Insider Trading) Regulations 2015 and the Company’s Code of Conduct aimed at preventing insider trading, strict guidelines and protocols have been put in place to ensure fair and ethical practices within the organization.

Insider trading is a serious offense that can undermine the integrity of the financial markets and erode investor confidence. It occurs when individuals within a company use non-public, material information to make trades and gain an unfair advantage over other investors. To prevent such illicit activities, the SEBI regulations mandate that all designated persons within the organization adhere to stringent rules regarding the handling of confidential information.

Designated persons, which include directors, employees, and connected persons, are required to obtain prior approval before conducting any trades in the company’s securities. This pre-clearance process helps to ensure that trades are conducted in compliance with regulatory requirements and that there is no misuse of privileged information for personal gain.

Additionally, designated persons are prohibited from communicating or providing information that could influence the trading decisions of others. This restriction helps to maintain a level playing field for all investors and prevents any unfair advantages based on inside knowledge.

Furthermore, the Company’s Code of Conduct mandates the establishment of a structured communication policy to ensure that all disclosures of material information are accurate, timely, and complete. This policy helps to prevent inadvertent leaks of confidential information and ensures that all stakeholders have equal access to relevant data.

Regular training programs and awareness sessions are conducted to educate employees about the importance of compliance with insider trading regulations. These initiatives help to foster a culture of transparency, integrity, and ethical behavior within the organization.

Violations of insider trading regulations are taken very seriously and can result in severe penalties, including monetary fines and legal action. By strictly adhering to the guidelines set forth by SEBI and the Company’s Code of Conduct, employees can help to uphold the principles of fair and ethical trading practices.

In conclusion, insider trading is a harmful practice that can compromise the integrity of the financial markets. By implementing robust compliance measures and promoting a culture of ethical behavior, companies can protect themselves from regulatory scrutiny and maintain the trust of investors. Upholding the principles of transparency, integrity, and fairness is essential for fostering a healthy and sustainable business environment.