Securities and Exchange Board of India (Prohibition on Insider Trading) (Amendment) Regulations, 2022 – 24th November, 2022

SEBI vide its notification dated 24 th November, 2022 amended the Securities and Exchange Board of India (Prohibition on Insider Trading) Regulations, 2015. These Regulations may be called the Securities and Exchange Board of India (Prohibition on Insider Trading) (Amendment) Regulations, 2022. They shall come into force on such date as the Board may by notification in the Official Gazette, appoint.

SEBI at its Board meeting dated 03 rd October, 2022 had decided to include mutual fund (MF) units under the ambit of insider trading regulations. Regulation says that no insider shall trade in the units of a scheme of a mutual fund, when in possession of unpublished price sensitive information, which may have a material impact on the net asset value of a scheme or may have a material impact on the interest of the unit holders.

With this amendment, SEBI specified a list of people who will be considered as insiders and restrictions pertaining to trading by Designated person, handling of UPSI, Formulation of code of conduct, etc.

Sr. No. Part/Regulation/ Chapter/Section /Sub-section(s) Under Old Regulation Under New Regulation Comment 1. in regulation 2, in sub-regulation (1), in clause (i), the words “except units of a mutual fund” shall be omitted. \"securities\" shall have the meaning assigned to it under the Securities Contracts (Regulation) Act, 1956 (42 of 1956) or any modification thereof except units of a mutual fund ; \"securities\" shall have the meaning assigned to it under the Securities Contracts (Regulation) Act, 1956 (42 of 1956) or any modification thereof except units of a mutual fund ; With this amendment, mutual fund units will come under the ambit of insider trading regulations and wi ll result in applicability of SEBI PIT Regulations to mutual fund units. 2. in regulation 2, in sub-regulation (1), in clause (l), after the word and symbol “subscribing,” and before the word “buying” the words and symbol “redeeming, switching,” shall be inserted and after the word and symbol “subscribe,” and before the word “buy”, the words and symbol “redeem, switch,” shall be inserted. \"trading\" means and includes subscribing, buying, selling, dealing, or agreeing to subscribe, buy, sell, deal in any securities, and \"trade\" shall be construed accordingly; \"trading\" means and includes subscribing, redeeming, switching, buying, selling, dealing, or agreeing to subscribe, redeem, switch, buy, sell, deal in any securities, and \"