Bharat Heavy Electricals Limited (BHEL) has announced the implementation of a revised Code of Conduct for regulating and reporting trading by designated persons and their immediate relatives, effective from October 29, 2025. The revised code also ensures fair disclosure of unpublished price-sensitive information, aligning with amended regulations. The code’s primary objective is to monitor trading activities and maintain compliance.
Revised Code of Conduct Effective
BHEL has implemented a revised Code of Conduct, designed to regulate and monitor trading activities by designated individuals and their immediate family members. This code ensures compliance with regulations and promotes fair practices. The revised code is also available on the company’s website.
Key Objectives and Applicability
The main goal of the Code of Conduct is to regulate, monitor, and report trading by designated individuals and their immediate relatives. This aligns with the goal of achieving compliance. It covers all designated people and their immediate family as defined in the code.
Definitions and Scope
The revised code includes definitions such as ‘Designated Employee,’ which encompasses key managerial personnel, all directors, and senior management as defined by BHEL. It also includes individuals with functional roles providing access to unpublished price-sensitive information (UPSI).
Trading Restrictions and Guidelines
The code addresses trading restrictions, stating no insider can trade securities if they have unpublished price-sensitive details. It also defines what makes up ‘Unpublished Price Sensitive Information (UPSI)’ which encompasses financial results, dividend declarations, changes in capital structure, mergers, acquisitions, and changes to key managerial personnel.
Disclosure Requirements
The disclosure requirements are detailed, including the need for promoters, directors, and designated individuals to disclose their holdings. There are provisions for initial and continual disclosures, including reporting securities acquired or disposed of, and reporting changes in related financial ties.
Penalties for Contravention
The code specifies penalties for contravening the outlined rules, which may include disciplinary action taken by the company. All BHEL employees are obligated to report any leak of UPSI, and the corporation will conduct inquiries into leaks or suspected leaks.
Fair Disclosure Practices
The Code also targets public disclosure of UPSI that could impact price discovery. This makes the information accessible to everyone. It ensures consistent and widespread dissemination, avoiding selective distribution of information.
Source: BSE
