Insider trading is the trading of a Listed company’s stock or other securities based on Unpublished Price Sensitive Information (UPSI) about the company. As a measure to prevent insider trading, SEBI, the securities market regulator, through its regulations, prohibits the communication of UPSI; except in furtherance of legitimate purposes, performance of duties or discharge of legal obligations.

In the recent years, as the need to regulate the persons handling and possessing UPSI became critical to prevent & prosecute insider trading acts, SEBI introduced significant amendments to enhance compliance related to prevention of Insider Trading. To this effect the requirement for maintenance of Structured Digital Database has been introduced to create a database of such persons or entities with whom UPSI is shared.

Such requirement of maintenance of Structured Digital Database (SDD) under the SEBI (Prohibition of Insider Trading) Regulations, 2015 is not limited to only Listed Company but also extended to Intermediaries and Fiduciaries who due to nature of their roles and functions routinely gain access to various Unpublished Price Sensitive Information (UPSI) related to listed entities and their securities as part of their ordinary course of business.

About INSILYSIS

MANDATORY MAINTAINENCE OF STRUCTURED DIGITAL DATABASE

The Board of Directors or the Head of the organization of every Listed Entity and such other Entities or Persons including SEBI-registered intermediaries and Fiduciaries who deal with the UPSI of a Listed Entity need to maintain a Structured Digital Database with:

Adequate Internal Control
Time Stamping
Audit Trail
Searchable Electronic Format

Identifying the practical challenges faced by the Companies Intermediaries and Fiduciaries in ensuring compliance with the law, ‘INSILYSIS’ has been developed to ensure the legal requirement of maintenance of Structured Digital Database and also to facilitate Regulatory compliance along with Management Reporting.
It is a comprehensive IT Solution especially designed for catering all the requirements of Corporates arising under SEBI (Prohibition of Insider Trading) Regulations, 2015.
The Application is a result of the continuous deliberate efforts and commitment of experienced professionals delivering wide array of services from over 20 years.
Thus, it brings together a winning combination of domain knowledge and technology.

On Premise Deployment

No outsourcing of data
Installation at company’s server
Maintain database internally as per legal requirement

Structured Digital Database and recording of UPSI

Recording of Name, PAN, and other requisite details of the persons with whom UPSI is shared
Details of the nature of UPSI
Details of persons who share the UPSI
Recording of other preliminary data of Company, its Employees and its External Parties

Pre – clearance of trades

Online request to Compliance Officer for pre – clearance of trades
Automated procedure for Request Approvals and Rejections (along with reasons thereof)

Internal Control System

Maintaining database of names, PAN and contact numbers of Designated Persons (“DP”), their immediate relatives and persons with whom DP shares a material financial relationship
Recording of names of education institutions from which DP has graduated
Recording of past Employers of DP

Disclosure Management

Different disclosures (Initial, Periodic and Continual) can be filed online via portal under different tabs
Automatic calculation of triggering limit (10 Lakhs) on which disclosure is to be given
Reporting of Code of Conduct Violation in standardized format of SEBI