Insider Trading
Insider trading, irrespective of how formal it sounds, is a white-collar crime. Such crimes result from trading in securities of a Listed Company by one of its Insiders. Such Insiders might have possession of unpublished price-sensitive information about the listed company.
Insider Trading, A Crime
In India, Insider Trading is considered a serious crime. It breaches the underlying trust among the company’s stakeholders. To curb such acts, Securities Regulators in India have become more vigilant. They are now devising new ways to monitor Insider Trading.
SEBI’s efforts to curb Insider Trading
Insider Trading has gained significant buzz for itself in the securities market. Such prominence can be attributed to the recent amendments issued by the SEBI Insider Trading Laws. These SEBI Laws are enforced to establish an effective mechanism for regulating market infractions such as Insider Trading.
What is an Insider Law Service?
Insider Law service is a service provided by a team of reputed lawyers and company secretaries that aid in curbing, identifying, and reporting insider trading events in a firm. Such experienced professionals use their expertise in dealing with listed companies who require an end-to-end solution to meet their legal compliance as well as regulatory reporting.
Why choose Corporate Professionals for Insider Law Services?
Corporate Professionals is a client-centric group of dedicated and research-oriented professionals oriented towards delivering innovative corporate business solutions. We employ an integrated model of techno-legal, and financial consulting services to our clientele.
The focal point of our organization is clients. We provide recommendations in the client’s best interest. Big or small, every client gets the same high level of personal attention. The same is the level of attention and solution we provide to clients who are at risk of Insider Trading in their firm. Our procedure is methodical. We provide a ton of dedicated Insider Law services to the needful clients, such as the following:
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Policy Review and Code of Conduct Formulation
SEBI instructs every Listed Company as well as the market intermediaries to formulate a code of conduct. This code will be referred to for regulation, monitoring, and reporting purposes by the Designated Persons. We help companies in formulating such a Code of Conduct. To formulate a code of procedures for fair UPSI disclosure, we can assist you in such code formulation in accordance with the Industry's best practices as well as the organization’s needs.
We also conduct a review of the following documents of the Company pertaining to insider trading:
- Codes
- Policies
- Procedures
We also identify gaps and recommend the requisite solution.
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Designing an Internal Control System
Our professionals assist companies in identifying Insider threats as well as setting up adequate controls to prevent them by interviewing HoDs, i.e., the Heads of Departments. Such interviews help us identify safeguards from insider trading. Consequently, we recommend solace for the identified risks.
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Insider Law Audit
SEBI instructed Companies to extend responsibilities on its Board and Audit Committee. This extension is to ensure the legal compliance of the Company. Also, Companies must verify their systems & implement controls.
For a periodical review of these systems and controls, our Insider Law Audit services can come in handy for you in monitoring compliances from time to time.
Insider’s Training & Workshop
Corporate Professionals believe that an active involvement in providing workshops to the following Designated Persons can aid in countering Insider Threats:
- Promoters
- Board of Directors
- Company’s KMPs
Our objective here is to sensitize employees or insiders about the implications of Insider Trading violation penalties. We also tend to extend our understanding of the key concepts of the PIT-related laws as well as the need for compliance along with the registered roles and responsibilities.
To know more about our Insider Law services, visit our official page.
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