Let’s start with the Inside Trading
Insider trading is the stock trading of a Listed Company. It can also be securities trading based on the company’s UPSI, i.e., Unpublished Price Sensitive Information. Such trading is unethical in business realms. So, to prevent insider trading, the primary Securities Market Regulator in India, SEBI, through its regulations, prohibits any UPSI communication, the exceptions being any of the following:
- Furthering Legitimate purposes
- Duties Performance
- Discharging Legal Obligations
The need to regulate people handling UPSI has become critical to prevent acts of insider trading. For such purpose, SEBI has introduced significant amendments to press on compliance relating to Insider Trading prevention.
This creates a need to generate and maintain a Structured Digital Database of entities sharing the UPSI. One such Insider Management Tool is INSILYSIS.
INSILYSIS: An Insider Law Management Tool
INSILYSIS is a structured digital database used to store and track the trading of people using UPSI allegedly indulging in Inside Trading. Let us learn about the mandatory clauses that are expected to be maintained within a digital database.
Mandatory Maintenance of Structured Digital Database
The Board of Directors KMPs and below level two KMPs of every Listed Entity or such other Entities dealing with the UPSI of a Listed Entity must maintain a Structured Digital Database with the following:
- Adequate Internal Control
- Time Stamping
- Audit Trail
- Recording of UPSI
INSILYSIS: The Much-Needed Digital Structured Database
With such practical challenges faced by the Companies in ensuring their morbid compliance, INSILYSIS was conceptualized. INSILYSIS, an Insider Management Tool, understands and ensures the legal requirement for Structured Digital Database maintenance. We can facilitate your regulatory compliance filing along with necessary Management Reporting.
INSILYSIS Legal Existence
INSILYSIS was built as an effective comprehensive IT solution for catering to the requirements of Corporates as per the SEBI’s Prohibition of Insider Trading Regulations of 2015.
How INSILYSIS was built?
The INSILYSIS was built on our continuous deliberate efforts. Our committed experienced professionals delivered a wide array of services for over 12 years. To their credit, Corporate Professionals developed and implemented the ESOP Guardian, management software. We have been managing the Guardian across the industry for over seven years now.
Functioning Components of INSILYSIS
The INSILYSIS brings a winning combination of domain knowledge as well as concurrent technology. The primary components of this incredible Insider Management Tool are as follows:
Premise Deployment: INSILYSIS is installed on the company’s server for maintaining the database internally as per SEBI’s legal requirement with no outsourcing of data.
UPSI recording at the Structured Digital Database: The following details are entered and maintained by the installed INSILYSIS:
- Name, PAN, and other details of the persons sharing UPSI
- UPSI nature details
- Preliminary Data Recordings of the Company, Employees, and External Parties
Pre-clearance of Insider Trades: INSILYSIS processes the online request to the Compliance Officer for pre-clearance of insider trades, and automates procedure for either the approval or rejections. It also provides the underlying reasons.
Internal Control System: INSILYSIS maintains a database of complete contact details of the Designated Persons as well as their immediate relatives with whom DP shares a financial relationship. Along with such details, the system records the names of education institutions and past Employers.
Disclosure Management: You can file the following online via INSILYSIS under different tabs:
- Initial
- Periodic
- Continual
Trading Window Management: INSILYSIS directly manages the Trading Window period and its closure, and issues alerts and notifications of such closures. It also customizes emails for each triggering event for window closure.
Separate Interface: INSILYSIS maintains a separate interface for each of the following and also facilitates approval and specialized reports:
- Admin
- Sub-Admin
- User
To know more about INSILYSIS, visit our official website.
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