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CS Executive · Capital Market and Securities Laws · Prohibition of Insider Trading

Kaveri Pharma Ltd is listed. Its compliance officer reports to the board. Under the SEBI (Prohibition of Insider Trading) Regulations, 2015, who is responsible for formulating the Code of Conduct to regulate, monitor and report trading by designated persons, and for its minimum standards?

The board of directors of every listed company formulates the Code of Conduct, which must contain standards at least as strict as the minimum standards in Schedule B of the SEBI insider trading regulations. It regulates, monitors and reports trading by designated persons and their immediate relatives.

  1. AThe board of directors of every listed company, with standards not less than those in Schedule BCorrect
  2. BThe stock exchange on which the company is listed, after trading hours
  3. CThe statutory auditor of the company, in the annual audit
  4. DThe registrar and share transfer agent of the company

Explanation

The board of directors of every listed company must formulate a code of conduct to regulate, monitor and report trading by designated persons and their immediate relatives, conforming to the minimum standards in Schedule B. Exchanges, auditors and RTAs do not frame it.

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