Clarification Related to Trading Window Closure

BSE has issued circular to listed companies today regarding Trading Window.

➡Listed companies are generally required to close their trading window, from the end of each quarter up to 48 hours after the declaration of financial results.

➡Now, since SEBI has extended the due dates for submission of quarterly results for the quarter ended on March 31, 2020, up to June 30, 2020.

➡The query arises as to relaxation is also provided from the closure of the trading window, otherwise, the trading window will be required to close from April 1, 2020, till 48 hours from declaration of quarterly results, at around June 30, 2020?

➡In this regard, SEBI has informed stock exchanges that there is no relaxation been granted in the closure of the trading window and the same should be closed as per the statutory timeline.

Clarification Related to Trading Window Closure

Dear Sir / Madam,

As you may be aware, SEBI vide its Circular No. SEBI/HO/CFD/CMD1/CIR/P/2020/38 dated March 19, 2020, had relaxed the compliance with respect to certain provisions of the SEBI (LODR) Regulations, 2015 due to the CoVID-19 virus pandemic 

The said relaxations inter alia included relaxation in the timeline for filing of Annual Financial Results by listed entities up to June 30, 2020.

In light of the said relaxation, SEBI had received requests seeking relaxation in the trading restriction period applicable in terms of Clause 4(2) of Schedule B to SEBI (Prohibition of Insider Trading) Regulations, 2015. The said clause 4 (2) of Schedule B to the PIT Regulations, inter alia, states as follows:

“Trading restriction period shall be made applicable from the end of every quarter till 48 hours after the declaration of financial results. The gap between the clearance of accounts by the audit committee and board meeting should be as narrow as possible and preferably on the same day to avoid leakage of material information.”

In this regard, SEBI has informed the Exchange that these requests seeking relaxation in applicability of trading window restrictions with regard to financial results for Quarter / FY ending March 31, 2020, have not been acceded to.

All Listed entities are requested to take note of the same and comply accordingly.