Sebi: Entities privy to UPSI can’t trade indirectly

New Delhi, Aug 12: Stock trades by entities privy to unpublished price sensitive information will be in violation of insidertradingnormsevenif they are done indirectly under discretionary portfolio management scheme, according to Sebi.

The markets regulator has given this opinion in response to queries by the country's second largest private sector lender HDFC Bank with respect to trading that can be done by its employees.

HDFC Bank had sought an informal guidance on whether its employees -- who are in possession of unpublished price sensitive information (UPSI) related to it or other listed companies dealing with the bank -- can carry out trades on the stocks concerned under discretionary portfolio management scheme.

Under the scheme, day-to-day investment decisions are taken by portfolio manager without