Pandey's Call to Action: Strengthening the Moral Fabric of Insider Trading Compliance

SEBI Chairman Tuhin Kanta Pandey emphasized the moral responsibility that banks have in adhering to insider trading regulations. Addressing managing directors and chief executives, Pandey highlighted the importance of reinforcing internal controls as a strategy to detect and prevent insider trading violations.

This address followed SEBI's interim order in June against senior figures at IndusInd Bank, accused of trading shares with access to undisclosed, price-sensitive information. Pandey underlined the necessity for banks to establish robust control frameworks, ensuring accountability and clear roles for handling unpublished information.

He urged banks to prioritize safeguarding sensitive data, leveraging technology for stronger compliance, and empowering compliance officers with training and authority. Pandey emphasized that compliance is not merely a legal duty but a moral one, advocating for the use of technology to alleviate compliance team burdens.

(With inputs from agencies.)