The integrity of the Indian capital market is stringently guarded by the Securities and Exchange Board of India (SEBI), particularly through the SEBI (Prohibition of Insider Trading) Regulations, 2015 (PIT Regulations). These regulations impose a non-negotiable obligation on listed entities and intermediaries to manage and track Unpublished Price Sensitive Information (UPSI) with forensic precision. The cornerstone of this compliance is the maintenance of a Structured Digital Database (SDD), a legal and technical requirement that demands specialized technology. Orion Legal Supplies provides a complete, SEBI-aligned insider trading software solution engineered specifically to meet this demanding mandate. This insider trading software transforms the complex administrative burden of UPSI governance into an automated, secure, and audit-ready process, making it the essential tool for every Compliance Officer committed to preventing insider trading and ensuring absolute regulatory adherence.
This dedicated insider trading software goes far beyond simple record-keeping; it is a holistic compliance platform that embeds the principles of the PIT Regulations into an organization's daily operations. From meticulously logging the sharing of every piece of UPSI to automating the intricate workflow of trade pre-clearance and managing trading window restrictions, the Orion Legal Supplies insider trading software minimizes the risk of human error and provides an irrefutable, time-stamped trail for any regulatory scrutiny. It is the single source of truth for all UPSI flow, personnel, and trading activities, ensuring the highest standards of corporate governance and market fairness.
I. Fulfilling the Core Regulatory Mandate with Insider Trading Software
The fundamental requirement driving the need for sophisticated insider trading software is Regulation 3(5) and 3(6) of the PIT Regulations. These clauses mandate the establishment and maintenance of the Structured Digital Database (SDD). A standard CRM or spreadsheet system is fundamentally incapable of meeting the legal and technical stipulations, making specialized insider trading software a necessity.
1. Tamper-Proof Integrity and Time-Stamping
The most crucial requirement is that the SDD must be non-tamperable. The insider trading software by Orion Legal Supplies is architected with an immutable log system that ensures once any record (detailing the sharing of UPSI) is entered, it cannot be modified or deleted. Any subsequent correction or update is logged as a separate, time-stamped event, preserving the forensic integrity of the original entry. The inclusion of a robust time-stamping mechanism is automatic and cryptographically secured, providing irrefutable evidence of when a person first received access to UPSI—the critical factor in any potential insider trading investigation.
2. Internal Deployment and Data Control
SEBI mandates that the SDD must be maintained internally. This strict requirement prohibits outsourcing the database to third-party cloud solutions where the company does not retain direct control over the data. The Orion Legal Supplies insider trading software is designed for on-premises installation or deployment on private, dedicated servers under the firm’s direct control. This ensures full data ownership, control, and adherence to the non-outsourcing clause, a feature vital for ensuring continuous insider trading software compliance.
3. Comprehensive UPSI Tracking
The insider trading software provides structured forms and workflows to capture all mandatory details about the sharing of Unpublished Price Sensitive Information:
Nature of UPSI: Clear logging of the type of sensitive information (e.g., financial results, M&A, dividends).
Sender and Recipient Details: Automated capture of the details (including PAN or other unique identifier) of the person sharing and every person receiving the UPSI.
Legitimate Purpose: Documentation of the "legitimate purpose" for which the UPSI was shared, providing the necessary legal justification as required by the regulations.
II. Proactive Risk Mitigation with Specialized Insider Trading Software Features
Beyond static record-keeping, effective insider trading software must actively manage and mitigate the risks associated with Designated Persons (DPs) and their trading activities. Orion Legal Supplies’ solution offers powerful workflows to keep the organization ahead of compliance requirements.
1. Designated Person (DP) and Insider Management
The insider trading software centralizes the complex task of managing DPs and "Connected Persons."
Know Your Insider (KYI) Database: The software maintains a comprehensive database of DPs, their immediate relatives, and connected persons, including PAN details, declarations, and a visual relationship map. This streamlines the process of obtaining and updating annual and periodic declarations, which is often a significant manual effort.
DP Lifecycle Management: The system manages the entire lifecycle of a DP, from onboarding and initial disclosures to changes in designation and offboarding, ensuring that all records are accurate and instantly available.
2. Trading Window Automation and Control
The most frequent cause of technical non-compliance is failure to correctly manage the trading window.
Automated Closure Logic: The insider trading software allows the Compliance Officer to pre-define rules for trading window closure (e.g., prior to quarterly results, mergers, etc.) and automate the opening/closure cycles.
Real-Time Alerts: Designated Persons and Insiders receive instant email alerts and notifications directly from the insider trading software regarding the current status of the trading window, significantly reducing the likelihood of inadvertent trades during a blackout period.
3. Automated Trade Pre-Clearance Workflow
All trades by DPs above a defined threshold require pre-clearance. The insider trading software simplifies this high-risk process:
Online Request Interface: DPs submit pre-clearance requests directly through the web-based interface.
Automated Vetting: The system automatically checks the request against pre-configured rules—is the trading window open? Is the DP in possession of any active UPSI (as logged in the SDD)? Are they performing a contra trade?
Audit Trail of Decisions: Every request, including the Compliance Officer’s decision (approval/rejection) and the underlying rationale, is automatically logged with a time-stamp, creating an essential audit trail for future regulatory review.
4. Trade Monitoring and Negative List Enforcement
The insider trading software actively monitors trading post-approval and enforces policy restrictions.
Contra-Trade Detection: The system automatically tracks trades to identify and flag any prohibited contra trades within the regulatory six-month period.
Negative List Management: The software allows the Compliance Officer to maintain a "Negative List" of specific securities or projects (e.g., for intermediaries and fiduciaries) that are completely blocked from trading, providing an extra layer of control.
III. Guaranteeing Audit Readiness and Corporate Confidence
The ultimate measure of the insider trading software is its ability to perform under regulatory scrutiny. Dexcraft’s solution is built with an eye toward instant, forensic audit readiness.
1. Forensic Audit Trail and Reporting
The system maintains a comprehensive, searchable audit trail that captures every action taken within the platform by every user. This granular logging capability is crucial for responding to specific inquiries from SEBI or stock exchanges. The insider trading software can instantly generate consolidated reports for:
All UPSI shared over a specific period.
Trading history and pre-clearance records for any individual DP.
A complete log of trading window open/closure events.
2. Regulatory Compliance Reporting
The insider trading software streamlines mandatory filings and reporting.
PCS Certification: The system simplifies the process of generating the data required for the annual Compliance Certificate submitted by the Practicing Company Secretary (PCS), ensuring the SDD maintenance is verifiable and auditable.
SEBI Disclosure Formats: The software generates all necessary regulatory disclosures in the prescribed SEBI formats, saving significant time and eliminating formatting errors during time-sensitive reporting periods.
3. Centralized Governance and Training
By centralizing all insider trading software functions, the organization achieves uniform compliance. The user-friendly interface ensures easy adoption by DPs and the Compliance Officer, backed by a dedicated legal support team that provides expert guidance during inspections or regulatory filings.
In conclusion, Orion Legal Supplies provides more than just a compliance tool; it delivers a comprehensive, insider trading software solution that protects the organization’s reputation and financial health. By automating the rigorous requirements of the SEBI PIT Regulations—from the tamper-proof SDD to the proactive management of the Designated Persons and their trading activities—the software empowers the Compliance Officer to manage risk with unparalleled confidence, cementing the company's commitment to the highest standards of fair and transparent market practice.
