Standardizing Reporting of Violation related to Code of Conduct under SEBI (Prohibition of Insider Trading ) Regulations 2015
The Board of Directors of every listed entity and Board of Directors and head (s) of the organisation of every intermediary and fiduciary are required to formulate a Code of Conduct for the designated person and their immediate relative and monitor its compliance and promptly inform SEBI about any violations of Code of Conduct.
SEBI has been receiving various references from listed companies regarding violation regarding Code of Conduct.
Many references provide incomplete or inadequate details about the nature of violation ,designation and functional role of designated person who have committed the violation , designation and functional role of designated persons who have committed the violation, frequency of violation in the past, the action taken and the reasons thereof etc.Such information is crucial for examining the reported violation and taking further necessary action if required
With the objective to standardize the process relating to dealing with such violation of Code of Conduct all listed entities and fiduciaries shall:
Report such violation by the designated persons and immediate relative of designated persons in the standardize format to SEBI
Maintain the database of the violation of Code of Conduct by designated person and immediate relatives of designated persons that would entail initiation of appropriate action against them.
The provision will came in to effect from the date of the circular.
Please find the following attached format for the same. Link
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