| Purpose | Track and analyze insider trading activity (promoter and key management transactions) to identify potential investment signals and corporate governance insights |
| Core Function | Monitors SEBI-mandated insider trading disclosures, analyzes patterns of buying and selling by company insiders, and generates alerts for significant or unusual insider activity |
| Sebi Pit Regulations | SEBI (Prohibition of Insider Trading) Regulations, 2015 • Prevent unfair trading based on unpublished price-sensitive information |
| Disclosure Requirements | Within 7 days of becoming insider • Within 2 trading days of transaction • If value exceeds ₹10 lakh in a quarter • Within 30 days of financial year end |
| Trading Window Closure | Closed from end of quarter until 48 hours after results • Closed until 48 hours after public announcement • Usually 7-21 days before results |
| Nse Bse Filings | Primary source • Real-time as filed |
| Sebi Sast | Substantial Acquisition of Shares and Takeovers • Disclosure if acquiring 5%+ or change of 2%+ • Major stake building activity |
| Shareholding Pattern | Quarterly filing required • Detailed breakdown of all shareholder categories • Track promoter holding changes |
| Pledge Data | Part of shareholding pattern • High pledge = financial stress risk |
| Promoter Buying | Very bullish - promoters know company best • Often followed by stock outperformance |
| Promoter Selling | Context-dependent • Look at pattern, not single transaction |
| Kmp Transactions | Strong signal of confidence • May be ESOP exercises, less concerning if planned |
| Cluster Buying | Multiple insiders buying around same time • Very bullish - collective confidence • 3+ insiders buying within 30 days |
| What Is Pledge | Promoters using shares as collateral for loans |
| Risk Levels | Below 10% of promoter holding pledged • 10-25% pledged • 25-50% pledged • Above 50% pledged |
| Risks | If share price falls, lender may sell pledged shares • Selling pressure drops price further, triggering more selling • Why does promoter need to borrow against shares? |
| Examples | Several companies faced crashes due to pledge unwinding • Track pledge changes quarter-over-quarter |
| Bulk Deal | Transaction of 0.5%+ of equity in a single day • Same day disclosure required • Large transactions, often institutional |
| Block Deal | Minimum 5 lakh shares or ₹5 crore transaction • Separate trading window (8:45-9:00 AM) • Pre-negotiated large trades |
| Interpretation | Usually planned divestment • Smart money accumulation • May indicate stake building |
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