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Informist, Wednesday, Sept. 3, 2025

 

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--SEBI Pandey on insider trading: Compliance officer not symbolic position
--SEBI Pandey on insider trading: Compliance officer should be fully empowered
--CONTEXT: SEBI Chairman Pandey's comments in address to listed banks MD, CEOs
--SEBI Pandey: Compliance with norms not just legal but moral obligation
--SEBI Pandey to bank MDs: Your responsibility higher on account of your role
 

 

MUMBAI – Compliance with prohibition of insider trading regulations is not just a legal obligation but it is a moral responsibility of banks, SEBI Chairman Tuhin Kanta Pandey said in an address to managing directors and chief executive officers of listed banks on Wednesday. "Let us aim to make our listed banks models of transparency, integrity, and ethical leadership setting benchmarks not just for compliance, but for corporate conduct in the entire financial ecosystem," he said.

 

Pandey said that the dual role of the top officials--as leaders of listed entities and as fiduciaries holding sensitive information of others--places on them a higher standard of care. "By strengthening internal controls, ensuring absolute confidentiality of UPSI (unpublished price sensitive information), empowering compliance officers, and leveraging technology, you can build organisations that are not only compliant but also trusted leaders in governance and ethics," Pandey said.

 

Pandey said the role of managing directors is not limited to overseeing their bank's own compliances but extends to ensuring that information about other companies, which they hold as fiduciaries, is protected with the same rigour and confidentiality as their own sensitive data.

 

Price sensitive information must always be handled on a need to know basis, Pandey said. "If an employee does not require the information for legitimate business purposes, they should not have access to it," he said. SEBI mandates that sharing of unpublished price sensitive information be recorded in a secure, time stamped, and tamper proof system.

 

The boards of the banks must ensure that the compliance officer is not a symbolic position but a fully empowered authority with the tools, training, and backing of leadership to enforce insider trading regulations, Pandey said.

 

Banks also need to focus on creating an efficient structured digital database, Pandey said. "When employees and executives know that every UPSI transaction is logged and traceable, the risk of deliberate leaks or insider trading reduces significantly," Pandey said. Further, when a regulatory authority comes knocking, the bank's ability to instantly and comprehensively demonstrate who knew what, and when, will be its greatest defense, he said.  End

 

Reported by Kabir Sharma

Edited by Ashish Shirke

 

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