Axar Digital offers insider trading compliance software and a structured digital database, which gives you a complete solution for tracking insider trading, compliance & control. It complies with the SEBI insider regulation 2015. Contact us to know more.

1. Insider Trading Compliance Software
by Axar Digital

2. About Us :
Governance is the key requirement for top managements of organizations. Governance
means ensuring that the interests of the stake-holders is appropriately taken care of. Axar
ensures that Corporate Governance remains the primary focus of all its solutions and its
products help the clients to take care of the following primary stakeholder groups –
● Shareholders – those who brought the company into existence
● Customers – those who are the reason for the company’s existence
● Employees – those who ensure that the company stays in existence, grows and
provides increasing happiness to all stakeholders

3. Board Information System (BiS)
Since notification of Companies Act 2013, in March 2014, both Governance & the Compliance have become
‘must haves’.
Earlier, they were at best ‘nice to have’ and at worst ‘a necessary evil’.
Axar’s Board Information System (BiS) is the complete governance & compliance solution, right from
planning through execution for the Secretarial Office and the Board of Directors.
BiS consists of two modules: BoardEye (paperless meeting management and board governance support)
and LegiLens (secretarial office management and compliance support for Companies Act 2013 and SEBI
regulations).

4. Worried about complying with SEBI’s new
regulations on insider trading?

5. “With effect from April 01, 2019, “structured digital database”containing
the names of such persons or entities as the case may be with whom
information is shared under this regulation along with the Permanent
Account Number or any other identifier authorized by law where
Permanent Account Number is not available. Such databases shall be
maintained with adequate internal controls and checks such as time
stamping and audit trails to ensure non-tampering of the database.”
Regulation 3(5) of SEBI (Prohibition of Insider Trading) Regulations,
2015, with Amendment Regulations announced in 2018.

6. Insider Trading 101
An Introduction to SEBI (Prohibition of Insider Trading) Regulation, 2015
The global market of trading stocks and other securities is highly unpredictable and is driven by myriad factors.
One of these factors, which prominently affects stock prices and market activities, is the day-to-day financial and
corporate decisionand policy-making by the companies, whose shares are listed on the markets. Since the
inception of trading in stocks, information, decisions and policies related to stocks have led to unforeseen lows
and highs in the routine lives of every investor around the world.

7. Insider Trading 101
These game-changing decisions and policies are kept highly confidential amongst the highranking personnel who
are crucial to the decision-making process. This is due to their direct impact on the price of market shares and
other securities. In legal terms, any information related to such decisions and policies is termed as ‘unpublished
price sensitive information’ (UPSI) and everyone who is in possession of or having access to UPSI is termed as
an ‘Insider’.
To know more about Insider Prohibition of Insider Trading
Visit our blog : https://www.axardigital.com/corporate-governance/insider-trading-101-
an-introduction-to-sebi-prohibition-of-insider-tradingregulation-2015-as-updated-till-january-2019/

8. What do companies that don’t comply stand to
lose?
Currently, Compliance Officer and Insiders need to watch out for two types of offences in this
context:
● Trading Offence : An insider (person with privileged information, not available to general
public) may be liable to be booked for this offense if he or she has engaged in trading
while in possession of UPSI (Undisclosed Price Sensitive Information)
● Communication Offense : An insider may be liable to be booked for this offense if he or
she is found to have disclosed UPSI to another individual, except for a legitimate purpose
or as required for performance of duty or discharge of legal obligations.

9. How InsiderLens helps mitigate risk of regulatory
action
InsiderLens is an insider trading compliance platform which can be used
by Compliance Officer to effectively manage and regulate several
processes which may impact fair trading. The use of an ITMS platform
helps insulate compliance officer from legal or regulatory actions in case
of violations by Insiders or Connected Persons. The platform ensures
adherence to best trading practices and helps the Compliance Officer,
as well as senior management, gain peace of mind in terms of
compliance with regulations.

10. Risk Mitigation & Assurance for Compliance Officer
The need of the hour
The need of the hour is an automated digital solution which will comply with SEBI’s
guidelines for a structured digital database of persons with insider information,
which also has adequate security controls to ensure non-tamperability. At Axar
Digital Services, we have designed a robust and secure web-based Insider
Trading Management System (ITMS) called InsiderLens, to help mitigate risk for
Compliance Officers as well as Insiders and Company Stakeholders.

11. So, don’t waste any more time thinking about how to
implement such a solution or the cost of deployment!
What you need is:
● Automated digital solution for structured digital database of persons with
insider information.
● Adequate security controls to ensure non-tamperability.
● Keep track of UPSI with zero delay from the moment sensitive information is
discussed by Designated Persons (DP’s).

12. ● Keep track of every single person exposed to UPSI DP’s as well as
Connected Persons (CP’s) including Close Relations (CR’s) and Maintained
Financial Relations (MFR’s).
● Maintain track of any trading activity till time of public disclosure of the UPSI.
● Flag off any mismatch in Benpos provided by the RTA.

14. Key Features
1)Alert for window closure to all Designated Persons
2)BenPos reconciliation
3) Recording of declarations by Designated Persons
4)Easy reporting of trades and disclosures
5)Timely alerts and reminders to prevent Insiders from trading in
violation of the Regulations
6)Keeping track of trade intimations and trade requests

15. Contact Us:
Email : info@axardigital.com
Call :+91 20 4014 9976
Visit us : https://www.axardigital.com/
Schedule Demo : https://www.axardigital.com/insiderlensdemo/