Improper Maintenance of SDD: Dos & Don’ts for Compliance
Maintaining Structured Digital Databases (SDDs) is a critical, and a mandatory requirement under SEBI’s Regulations 3(5) and 3(6) of the PIT Regulations. These regulations ensure the accurate tracking of Unpublished Sensitive Information (UPSI) to monitor and prevent insider trading. Failing to maintain proper SDDs can lead to severe legal, financial, and operational consequences. This article provides a comprehensive guide on the dos and don’ts for maintaining SDDs, highlighting key points that constitute improper maintenance and offering practical advice to ensure compliance.
Common and Uncommon Questions Faced by NBFCs in SDD Maintenance
Structured Digital Databases (SDDs) have become integral to the operations of financial institutions, including Non-Banking Financial Companies (NBFCs). These institutions face unique challenges and requirements when it comes to maintaining their SDDs, driven by the distinct nature of their activities and regulatory environments.
FAQs Faced by Merchant Bankers in SDD Maintenance
Structured Digital Databases (SDDs) have become integral to the operations of financial institutions, including merchant bankers and Non-Banking Financial Companies (NBFCs). These institutions face unique challenges and requirements when it comes to maintaining their SDDs, driven by the distinct nature of their activities and regulatory environments.
Understanding the Role of Structured Digital Database (SDD) in Preventing Insider Trading
Insider trading has long been a challenge for regulatory bodies, threatening the integrity and fairness of financial markets. With advancements in technology and evolving regulatory frameworks, the introduction of a Structured Digital Database (SDD) emerges as a robust solution to curb this menace. The SDD not only facilitates stringent compliance with regulatory requirements but also acts as a formidable deterrent to insider trading activities.
Common Mistakes in SDD Compliance: A Guide for Listed Companies
The Securities and Exchange Board of India (SEBI) has established regulations to create a robust framework. This is aimed at prohibiting insider trading in securities. SEBI’s (Prohibition of Insider Trading) Regulations, 2015, are designed to prevent insiders from communicating Unpublished Price Sensitive Information (UPSI).
The Importance of Structured Digital Databases (SDD) in Insider Trading Compliance
Discover how Structured Digital Databases (SDD) serve as a pivotal tool in maintaining fairness and preventing insider trading in securities trading, as outlined by the SEBI (Prohibition of Insider Trading) Regulations.
