Sebi mulls extending automated trading window closure to relatives of designated persons
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Markets regulator Sebi on Friday proposed to extend the automated closure of trading window ahead of the declaration of financial results to the immediate relatives of designated persons of listed companies. The move, if implemented, would prevent inadvertent non-compliance of insider trading rules, according to a consultation paper floated by Sebi. The markets regulator, in August 2022, issued a framework restricting trading by depository participants by way of freezing the PAN at security level during the trading window closure period. The freezing of the PAN at the security level is being carried out by the stock exchanges and depositories based on the information provided by the listed company. Initially, this PAN freeze framework was made applicable for trading window closure on account of declaration of financial results of listed companies that were part of benchmark indices such as Nifty 50 and Sensex. Subsequently, Sebi in July...