Central Bank of India has released an amended Code of Conduct for Prohibition of Insider Trading, effective April 2, 2026. The updated policy aligns with current market standards to regulate, monitor, and report trading activities by designated persons and their immediate relatives. This code emphasizes strict compliance with the handling of unpublished price-sensitive information, the maintenance of structured digital databases, and the enforcement of trading window closures to prevent market abuse and ensure transparency.
Strengthening Compliance Framework
As part of its ongoing commitment to corporate governance, Central Bank of India has formally updated its Code of Conduct for Prohibition of Insider Trading. The revised framework serves to institutionalize rigorous monitoring mechanisms for all designated persons, ensuring that trading activities are conducted in total adherence to market regulations. This initiative reflects the bank’s dedication to maintaining integrity and preventing the misuse of confidential information.
Key Features of the Amended Code
The revised policy introduces several critical measures to bolster the bank’s regulatory oversight. Key highlights include the mandatory maintenance of a structured digital database containing logs of all individuals with access to unpublished price-sensitive information, secured with time-stamping and audit trails to prevent unauthorized tampering. Furthermore, the bank has mandated that during trading window closure periods, the Permanent Account Numbers (PAN) of designated persons and their immediate relatives will be frozen to restrict any potential dealing in the bank’s securities.
Procedures for Trading and Disclosure
The code outlines specific guidelines for the pre-clearance of trades for transactions exceeding ₹10 lakh within a single calendar quarter. Additionally, the policy requires annual disclosures from designated persons, including details regarding immediate relatives and entities with whom they share a material financial relationship. The bank has also reinforced its contra-trade restrictions, explicitly prohibiting the reversal of trades within a six-month period to ensure that short-term speculative activities are effectively curbed.
Enforcement and Reporting
To ensure strict adherence, the Compliance Officer is empowered to oversee the implementation of this code, with direct reporting to the Audit Committee. Any instances of non-compliance or contravention will be subject to disciplinary actions, including wage freezes, suspension, or exclusion from future employee stock option plans. These measures are designed to deter market abuse and ensure the bank’s operations remain transparent and equitable for all stakeholders.
Source: BSE
