Corporate Updates – 26-08-2015


SEBI has issued Guidance Note on SEBI (Prohibition of Insider Trading) Regulations, 2015. As the new Insider Trading Regulations came into effect from May 15th, 2015. Subsequently SEBI received certain queries from the market participants seeking guidance on the interpretation of some provisions of the Regulations. Based on the queries received SEBI has clarified that Exercise of ESOPs shall not be considered to be “trading” except for the purposes of Chapter III of the Regulations. However, other provisions of the Regulations shall apply to the sale of shares so acquired. Further, any derivative contract that is cash settled on expiry shall be considered to be a contra trade. Trading in index futures or such other derivatives where the scrip is part of such derivatives, need not be reported. Buy back offers, open offers, rights issues, FPOs, bonus, etc. of a listed company are available to designated persons also, and restriction of ‘contra-trade’ shall not apply in respect of such matters.


DVAT Authorities have notified the Delhi Value Added Tax (Amendment) Rules, 2015 which shall come into force on the date of their publication in the Delhi Gazette. An attempt has been made to clarify the provisions relating to the proportionate reduction of tax credit on purchases of goods sold at a price lower than the purchase price shall not apply to a case where in the ordinary course of business the goods are sold by a dealer at a loss or where the dealer receives a ‘discount or incentive through a credit note issued by the selling dealer after issuance of tax invoice.

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