SEBI reinforces UPSI and insider trading compliance, focusing on PIT frameworks, SDD obligations, trading windows, and disciplinary actions in 2026.
SEBI Tightens Insider Trading Compliance Regime
As part of its 2026 enforcement focus, SEBI has highlighted critical areas where listed companies are falling short in compliance with insider trading norms under the SEBI (Prohibition of Insider Trading) Regulations, 2015.
Key concerns include inadequate identification and handling of Unpublished Price Sensitive Information (UPSI), delayed creation of insider lists, improper closure of trading windows, and insufficient Systematic Internal Data (SDD) documentation. SEBI has released a 20-point compliance checklist to assist companies in strengthening their frameworks.
Penalties for lapses have been consistently imposed, including monetary fines and debarment in severe cases. Legal teams must ensure regular updates to the Code of Conduct, timely board approvals, and integration of UPSI protocols across departments such as finance, investor relations, and M&A. Auditors and compliance officers are urged to conduct periodic reviews ahead of earnings announcements.
Citations
- SEBI (Prohibition of Insider Trading) Regulations, 2015