The National Securities Depository Limited (NSDL) on December 22, 2025, notified regarding the Extension of automated implementation of trading window closure to Immediate Relatives of Designated Persons, on account of the declaration of financial results.
The following has been stated namely: -
• The circular mandates that listed companies shall define and upload the Trading Window Closure Period for their Designated Persons (DPs) via the NSDL Issuer Services portal, effective from January 01, 2026, aligning with SEBI’s Prohibition of Insider Trading regulations.
• Under this framework, companies are required to specify the Commencement Date and End Date of closure for each quarter, especially around financial results and other sensitive events when Unpublished Price Sensitive Information (UPSI) may be possessed by insiders.
• The circular extends the system-driven mechanism of PAN freezing at the security level, which restricts trading by DPs (and typically their immediate relatives) in the securities of the company during the closure period to prevent insider trading.
• Annexure A provides operational guidelines, including: review and updating of the Designated Persons list, procedures to define/update window closure dates, PAN data submission timelines (normally at least 2 trading days before the closure), and portal navigation instructions for issuers.
• The circular reinforces compliance with SEBI (Prohibition of Insider Trading) Regulations, 2015, requiring issuers to follow the closure protocol and system disclosures to ensure trading restrictions are correctly implemented through NSDL’s issuer system.
[Notification no. - NSDL/CIR/II/44/2025]
