Central Bank of India has announced amendments to its Code of Conduct for the Prohibition of Insider Trading, aligning with the Securities and Exchange Board of India (SEBI) regulations. The updated code is designed to regulate, monitor, and report trading activities by designated persons and their immediate relatives, ensuring compliance with SEBI’s Prohibition of Insider Trading Regulations, 2015, as amended.
The revised code, which is available on the bank’s website, outlines the need and objectives for preventing insider trading, detailing the applicability to designated persons, connected persons, and insiders. It also defines key terms and sets forth procedures for the communication or procurement of unpublished price-sensitive information (UPSI), trading restrictions while in possession of UPSI, and measures to prevent the misuse of such information.
Central Bank of India has emphasised the importance of the trading window and its closure, alongside the necessity for pre-clearance of trades. The code also imposes other restrictions to mitigate the risks associated with insider trading.
The bank’s compliance officer, who is the Company Secretary, will be responsible for ensuring adherence to the policies and procedures outlined in the code. This includes maintaining records, monitoring trades, and overseeing the preservation of unpublished price-sensitive information under the supervision of the Board of Directors.
The Central Bank of India is committed to upholding the highest standards of corporate governance and transparency, as evidenced by its proactive approach to updating its insider trading policies in line with regulatory requirements.
Disclaimer: This article is based on a regulatory filing submitted to the National Stock Exchange of India (NSE).