The weekly messenger | Edition 24.19
This newsletter is a weekly compilation of accounting, auditing and related regulatory news from different accounting and regulatory bodies in India and overseas.
Regulatory News
Discussion Paper on amendment to the SEBI (Prohibition of Insider Trading) Regulations, 2015 to provision for an informant mechanism – 10 June 2019
Insider trading is defined in the SEBI (Prohibition of Insider Trading) Regulations, 2015 (‘PIT Regulations’) to mean trading of securities while in possession of unpublished price sensitive information (‘UPSI’). As a step towards strengthening the mechanism for early detection of insider trading and better enforceability, it is desirable and prudent that SEBI considers instituting a process that enables timely reporting of instances of insider trading violations and also provide for grant of reward with adequate checks and balances that could incentivize timely reporting of information relating to insider trading to SEBI at the first available opportunity.
Hence a mechanism which provides ‘near absolute confidentiality’ along with appropriate safeguards is proposed to enable reporting of such information. Considering the implications of this policy on various stakeholders; public comments on the proposal to have such a mechanism are solicited.
Comments are to be provided by 01.07.2019.
For more information, click here.
SEBI issued guidelines for Enhanced Disclosures by CRAs – 13 June 2019
In order to protect the interest of investors in securities and to promote the development of, and to regulate the securities market, the Securities and Exchange Board of India (SEBI) has issued enhanced disclosure guidelines for Credit Rating Agencies (CRAs), wherein the SEBI has decided to prescribe the following disclosures:
- Computation of Cumulative Default Rates (CDR)
- CRAs shall frame a uniform Standard Operating Procedure (SOP) in respect of tracking and timely recognition of default, which shall be disclosed on the website of each CRA.
- Introducing Probability of Default (PD) benchmarks for CRAs
- Rating symbol for Instruments having explicit Credit Enhancement feature
- Disclosure of rating sensitivities in press release
- Disclosure on liquidity indicators
- Tracking deviations in bond spreads
For more information, click here