On November 4, 2019, SEBI issued ‘Frequently Asked Questions’ on the SEBI (Prohibition of Insider Trading) Regulations, 2015 (‘PIT Regulations’), which clarify the following:

i.     Trading window and pre-clearance requirements do not apply to exercise of employee stock options issued under SEBI (Share Based Employee Benefits) Regulations, 2014, but apply to sale of shares acquired upon exercise of the employee stock options;

ii.      Employees of listed companies, including foreign nationals, who are designated persons under the code of conduct and the PIT Regulations are required to comply with the code of conduct in respect of trading in American Depository Receipts and Global Depository Receipts;

iii.     In their structured digital database, listed companies should maintain the names and permanent account numbers of the fiduciaries and intermediaries with whom they have shared unpublished price sensitive information (‘UPSI’) and such fiduciaries and intermediaries should, at their end, maintain details of the persons (within their system) having access to UPSI;

iv.      All information required to be collected from designated persons should be collected till such persons are employed with the company. For a period of 1 year thereafter, efforts should be made to maintain updated address and contact details of such persons and such data should be preserved for a period of 5 years.