Trading Window: Capital market regulator SEBI may make some changes in the trading window related to some transactions. SEBI is considering this. A consultation letter has been issued by SEBI in the matter. Through this letter, SEBI has sought suggestions from the general public. Under the new changes, some transactions may be exempted from trading window restrictions. This move is to exempt some transactions, including buying non-convertible securities, from trading window restriction norms.

What are the PIT rules?

Let us tell you that SEBI Insider Trading Prohibition Regulations, 2015 (PIT) prohibits insider dealing. This means disclosure of sensitive information that may affect the price of a security.

In this case, the PIT rules mandate the closure of the trading window when the company's compliance officer determines that a designated person may hold UPSI. During this time, such a person and his close relatives are also barred from trading in securities.

What things will not be included?

In its latest proposal, Sebi said a change has been made in the said amendment to the said amendment which provides that the trading window restrictions will not apply to transactions which are, among other things, carried out by the regulations made by the Board.

These include the purchase of warrants or conversion of debentures, rights issue subscription, follow-on offering, preferential allotment mentor tendering of shares in buyback offer, open offer, and delisting offer.