Insider Trading Compliance Software by Axar Digital
About Us : Governance is the key requirement for top managements of organizations. Governance means ensuring that the interests of the stake-holders is appropriately taken care of. Axar ensures that Corporate Governance remains the primary focus of all its solutions and its products help the clients to take care of the following primary stakeholder groups – ● Shareholders – those who brought the company into existence ● Customers – those who are the reason for the company’s existence ● Employees – those who ensure that the company stays in existence, grows and provides increasing happiness to all stakeholders
Board Information System (BiS) Since notification of Companies Act 2013, in March 2014, both Governance & the Compliance have become ‘must haves’. Earlier, they were at best ‘nice to have’ and at worst ‘a necessary evil’. Axar’s Board Information System (BiS) is the complete governance & compliance solution, right from planning through execution for the Secretarial Office and the Board of Directors. BiS consists of two modules: BoardEye (paperless meeting management and board governance support) and LegiLens (secretarial office management and compliance support for Companies Act 2013 and SEBI regulations).
Worried about complying with SEBI’s new regulations on insider trading?
“With effect from April 01, 2019, “structured digital database”containing the names of such persons or entities as the case may be with whom information is shared under this regulation along with the Permanent Account Number or any other identifier authorized by law where Permanent Account Number is not available. Such databases shall be maintained with adequate internal controls and checks such as time stamping and audit trails to ensure non-tampering of the database.” Regulation 3(5) of SEBI (Prohibition of Insider Trading) Regulations, 2015, with Amendment Regulations announced in
Insider Trading 101 An Introduction to SEBI (Prohibition of Insider Trading) Regulation, 2015 The global market of trading stocks and other securities is highly unpredictable and is driven by myriad factors. One of these factors, which prominently affects stock prices and market activities, is the day-to-day financial and corporate decisionand policy-making by the companies, whose shares are listed on the markets. Since the inception of trading in stocks, information, decisions and policies related to stocks have led to unforeseen lows and highs in the routine lives of every investor around the world.
Insider Trading 101 These game-changing decisions and policies are kept highly confidential amongst the highranking personnel who are crucial to the decision-making process. This is due to their direct impact on the price of market shares and other securities. In legal terms, any information related to such decisions and policies is termed as ‘unpublished price sensitive information’ (UPSI) and everyone who is in possession of or having access to UPSI is termed as an ‘Insider’.
To know more about Insider Prohibition
of Insider Trading
Visit our blog : https://www.axardigital.com/corporate-governance/insider-trading-101-an-introduction-to-sebi-prohi bition-of-insider-tradingregulation-2015-as-updated-till-january-2019/
What do companies that don’t comply stand to lose? Currently, Compliance Officer and Insiders need to watch out for two types of offences in this context: ● Trading Offence : An insider (person with privileged information, not available to general public) may be liable to be booked for this offense if he or she has engaged in trading while in possession of UPSI (Undisclosed Price Sensitive Information) ● Communication Offense : An insider may be liable to be booked for this offense if he or she is found to have disclosed UPSI to another individual, except for a legitimate purpose or as required for performance of duty or discharge of legal obligations.
How InsiderLens helps mitigate risk of regulatory action InsiderLens is an insider trading compliance platform which can be used by Compliance Officer to effectively manage and regulate several processes which may impact fair trading. The use of an ITMS platform helps insulate compliance officer from legal or regulatory actions in case of violations by Insiders or Connected Persons. The platform ensures adherence to best trading practices and helps the Compliance Officer, as well as senior management, gain peace of mind in terms of compliance with regulations.
Risk Mitigation & Assurance for Compliance Officer The need of the hour The need of the hour is an automated digital solution which will comply with SEBI’s guidelines for a structured digital database of persons with insider information, which also has adequate security controls to ensure nontamperability. At Axar Digital Services, we have designed a robust and secure web-based Insider Trading Management System (ITMS) called InsiderLens, to help mitigate risk for Compliance Officers as well as Insiders and Company Stakeholders.
So, don’t waste any more time thinking about how to implement such a solution or the cost of deployment! What you need is: ● Automated digital solution for structured digital database of persons with insider information.
● Adequate security controls to ensure non-tamperability.
● Keep track of UPSI with zero delay from the moment sensitive information is discussed by Designated Persons (DP’s).
● Keep track of every single person exposed to UPSI DP’s as well as Connected Persons (CP’s) including Close Relations (CR’s) and Maintained Financial Relations (MFR’s).
● Maintain track of any trading activity till time of public disclosure of the UPSI.
● Flag off any mismatch in Benpos provided by the RTA.
Key Features 1)Alert for window closure to all Designated Persons 2)BenPos reconciliation 3) Recording of declarations by Designated Persons 4)Easy reporting of trades and disclosures 5)Timely alerts and reminders to prevent Insiders from trading in violation of the Regulations 6)Keeping track of trade intimations and trade requests
Contact Us: Email : info@axardigital.com Call :+91 20 4014 9976 Visit us : https://www.axardigital.com/ Schedule Demo : https://www.axardigital.com/insiderlensdemo/