SEBI Eases Trading Window Restrictions for NCS Subscriptions

SEBI has updated insider trading norms by allowing subscription to non-convertible securities during trading window closure periods. This change exempts certain transactions from restrictions, improving investor confidence and streamlining processes for companies seeking financing through NCS. The update takes immediate effect.

In a significant amendment to insider trading regulations, the Securities and Exchange Board of India (SEBI) has lifted restrictions, allowing investors to subscribe to non-convertible securities even during the trading window closure period. This decision is poised to significantly impact market participants.

The previous regulations restricted trading activities during defined periods, but exemptions are now applicable to transactions such as rights issues and preferential allotments. This marks an extension of exemptions introduced in a 2020 circular.

According to SEBI, this move is intended to bolster investor confidence and facilitate easier access to financing for companies. Stock exchanges must ensure companies are informed of these changes immediately.

(With inputs from agencies.)